BlockFi’s Zac Prince Says He Gave Up Personal Assets to Boost Customer Recovery

BlockFi founder reveals that he forfeited his significant crypto holdings on the platform to increase the recovery pool for customers. 

Zac Prince, the founder and CEO of the troubled crypto lender, BlockFi, has recently shared insights into the company’s bankruptcy proceedings. 

A Strategic Move

In a tweet on Sunday, Zac Prince explained that his decision to remain silent up to this point was a strategic move to enable the bankruptcy process to unfold without external distractions. 

He revealed that he had taken calculated steps to ensure that BlockFi clients recover their funds, including forfeiting his personal assets on the platform and providing unpaid consultation to the BlockFi estate. He said, 

“Every action I’ve taken since filing for bankruptcy has been with the focus of recovering as much value as possible for BlockFi’s clients… I kept substantially all of my crypto at BlockFi and gave up my recovery rights to increase the recovery pool for clients. I also agreed to provide unpaid, ongoing cooperation to the BlockFi estate for anything they may need my help with.”

Successful Bankruptcy Proceedings

Zac Prince further highlighted that the company’s bankruptcy process has witnessed considerable success, with 100% distributions for BlockFi account holders.

The BlockFi founder mentioned that the initial payouts for interest account clients had already begun, adding that recipients can recover up to 100% of their accounts. However, he pointed out that the extent of the payout to interest account clients will be determined by the potential distribution from the FTX estate. 

While reflecting on the impact of BlockFi’s bankruptcy on all the parties involved, Zac Prince regretted not spotting the fraud at FTX sooner and preventing BlockFi from having a strong exposure to the bankrupt firm. He, however, noted that he had testified at the Sam Bankman-Fried (SBF) trial to aid in the administration of justice. 

Nevertheless, the BlockFi founder was optimistic about the efficiency of the company’s bankruptcy process. He said: “From what I’ve seen, the BlockFi bankruptcy is among the fastest and least expensive for large crypto bankruptcies – which is a testament to the quality of the work from the BlockFi team and other professionals involved.”