BlockFi CEO Blames FTX for His Company’s Bankruptcy

Zac Prince, the CEO of BlockFi, has blamed FTX and Alameda Research for causing his company, BlockFi, to go bankrupt. He spoke about this in court during the criminal trial of Sam Bankman-Fried, who used to be in charge of FTX.

Prince explained to the people in the court that BlockFi put a total of $1.1 billion into the FTX exchange. He said that if he had known that Alameda was using FTX customer money in a way that isn't allowed, BlockFi would not have lent them any money. "No. That is not appropriate," Prince said, according to Inner City Press. BlockFi tried to call back some of the loans, but $650 million is still missing.

Bankman-Fried is in a big legal problem that might result in him going to jail for many years if the court finds him guilty. The charges against him include fraud because it is believed that he and some other FTX leaders used a lot of customer money for their own investments that did not work out. FTX also declared bankruptcy last year.

After FTX faced its downfall, BlockFi also ran into financial trouble and declared bankruptcy in November 2022.Now, BlockFi is in the process of going through the bankruptcy steps. They have asked certain eligible parties to vote and accept their plan by the deadline time (September 11) to resolve the bankruptcy situation in a way that is fair and maximizes value, aiming to give client funds back as fast as they can.