Zac Prince, former CEO and co -founder of Collapsed Crypto Lender Blockfi Inc., is back in the digital asset industry as head of Galaxy Digital’s new bank platform, Galaxy One. The move marks Prince’s return to a leadership role less than three years after Blockfi’s bankruptcy, which followed the implosion of the Crypto Exchange FTX.
Galaxy hired Prince earlier this year to oversee Galaxy One, which was launched today and allows users to earn dividends on cash deposits and trade both cryptocurrencies and traditional stocks. The appointment places Prince at the center of another effort to merge crypto services with mainstream financing, but this time under significantly different conditions.
In an interview with Bloomberg, Prince said his personal risk appetite is “more conservative” after what he experienced with Blockfi. He described Galaxy as “night and day with regard to the differences in setup and risk appetite and the regulatory structures of the companies.”
Blockfi became a symbol of Crypto’s loan boom and bust. The company drew users by offering interest accounts with returns as high as 9.5%before collapsing when FTX’s failure left it shortly after liquidity. In the early days, the company raised funding from the top investment companies, including Peter Thiel’s Valar Ventures as well as Galaxy Digital, led a huge $ 52.5 million round in July 2018.
In 2022, after the collapse of FTX, US Securities and Exchange Commission accused Blockfi for not registering his lending product and misleading clients about risks. The company later settled the case and paid $ 100 million in sanctions.
For Galaxy, led by Investor Mike Novogratz, Galaxy One represents an extension to consumer -focused financial products. The platform’s mix of traditional and digital asset services aims to meet a market that has grown more carefully and more regulated since the excess of the last crypto cycle.
