2 months ago 2 min read

From a $400M FTX Loan, BlockFi CEO is Now Cashing Out About $10M

blockfi-ftx-zac prince-bankruptcy-alameda

Last year, the CEO of BlockFi withdrew more than $10 million from the platform to pay taxes, while FTX made payments totaling almost $15 million to particular insider accounts as part of a confidential settlement.

CEO Zac Prince was able to withdraw around $9.2 million from BlockFi in April 2022 thanks to a $400 million loan from FTX, according to a presentation BlockFi provided detailing the successes, timelines, and suggested agenda of its current legal struggle.

Prince withdrew a further $1.36 million in August at market rates. He used the money, claims the corporation, to pay taxes.

FTX provided BlockFi with a $400 million loan to enable the company to conduct billions of dollars in client-requested withdrawals and other transactions between June and November 2022 as a result of industry-wide withdrawals from platforms in June.

One of the many companies that borrowed money from FTX, which filed for bankruptcy in November, is BlockFi. The company claims that its management team invested their own money on the platform to trade, collect interest, and hold a variety of cryptocurrencies under the same conditions as clients, passing the benefits from the FTX rescue to them as well as client earnings.

In June, FTX increased their donation to BlockFi insiders by $15 million after a counterparty threatened legal action. According to BlockFi, some payments from the company were made to the counterparty through the executives as part of the settlement arrangement.

BlockFi filed a motion on December 20, 2022, requesting that a bankruptcy court in the United States permit its users to withdraw digital assets that are now held in BlockFi wallets.

The action would not affect transfers to or withdrawals from BlockFi Interest Accounts, which are currently suspended, according to the crypto lender. BlockFi International is the name of the department within the Bermuda-based business that oversees its international operations.

BlockFi was also in serious financial trouble due to a dispute over Robinhood shares that Alameda had pledged as security for more than $600 million in loans.

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