Zac Prince, the former director general and co-founder of the collapse of Crypto Blockfi Inc. loans, is back in the digital asset industry as a chief of the new Galaxy Digital banking platform, Galaxy One. This decision marks Prince’s return to a leadership role less than three years after the bankruptcy of Blockfi, which followed the implosion of Crypto Exchange FTX.
Galaxy hired Prince earlier this year to supervise Galaxy One, who launched today and allows users to gain return on cash deposits and exchange cryptocurrencies and traditional actions. The appointment places the prince at the center of another effort to merge the cryptography services with consumer finances, but this time, in clearly different conditions.
In an interview with Bloomberg, Prince declared that his appetite for personal risks is “more conservative” after what he experienced with Blockfi. He described the galaxy as “nocturnal and day in terms of differences in the configuration and appetite for risks and regulatory structures of companies”.
Blockfi has become a symbol of the boom and the Crypto loans. The company attracted users by offering interest accounts with yields up to 9.5%, before collapsing when FTX’s failure left it unless there is liquidity. At its beginnings, the company has lifted the funding of the best investment companies, in particular the Valar companies by Peter Thiel as well as Galaxy Digital, which led a heavy tours of $ 52.5 million in July 2018.
In 2022, after the collapse of the FTX, the American commission for securities and the exchange instructed Blockfi not to record its loan product and to deceive customers on the risks. The company then settled the case, paying $ 100 million in penalties.
For Galaxy, led by investor Mike Novogratz, Galaxy One represents an expansion in consumer -oriented financial products. The mixture of traditional and digital asset services by the platform aims to respond to a market which has become more prudent and more regulated since the excess of the last crypto cycle.
