Taking the witness stand at Sam Bankman-Fried\u2019s criminal trial, <\/span>BlockFi<\/span><\/a>\u2019s former Chief Executive Officer (CEO) Zac Prince has pointed accusing fingers at <\/span>FTX<\/span><\/a> and its sister trading firm Alameda Research for the downfall of his company, per an X post from Inner City Press.<\/span><\/p>\n As the second week of Bankman-Fried\u2019s criminal trial draws to a close, the former BlockFi CEO <\/span>testified<\/span><\/a> stating how he was misled by the fake documents that were presented by the companies. Zac Prince claimed that both companies are responsible for BlockFi\u2019s bankruptcy, citing that he was not aware of the false balance sheets that were being used even though due diligence was conducted.\u00a0<\/span><\/p>\n <\/p>\n According to BlockFi\u2019s CEO, no funds would have been released if he had been privy to that information. Markedly, Prince explained that BlockFi never make loans without performing due diligence.<\/span><\/p>\n Furthermore, he told prosecutors that BlockFi had a total of $1.1 billion on the defunct FTX exchange. When he was asked why BlockFi filed for bankruptcy, he responded simply by labeling \u201cAlameda and FTX.\u201d\u00a0<\/span><\/p>\n <\/p>\n Prince was also asked if his now-beleaguered cryptocurrency lending platform would have lent funds to Alameda had it known it was using FTX customer funds, he clarified that it was inappropriate, therefore, BlockFi would not have availed Alameda Research of the funds at the time.<\/span><\/p>\n <\/p>\n At a point, BlockFi called some of the loans that it had given to Alameda but there was still an outstanding of $650 million which was collateralized with Greyscale Trust and Robin Hood.<\/span><\/p>\n BlockFi <\/span>filed<\/span><\/a> for Chapter 11 bankruptcy protection in November, right after FTX <\/span>collapsed<\/span><\/a>. The move to file for bankruptcy was necessary for the crypto firm to commence a restructuring of its business and operations as well as to preserve client value while pursuing recoveries on counterparty obligations. At the time, its problems were attributed to a contagion of FTX implosion.<\/span><\/p>\n Mark Renzi, Managing Director of Berkeley Research Group which was hired to look into BlockFi\u2019s bankruptcy, stated that there were two factors that <\/span>contributed<\/span><\/a> to the collapse of the crypto lender. One was the broad declining state of the crypto market while the other was the collapse of FTX.<\/span><\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <!– <\/p>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n –><\/p>\n –><\/p>\n Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\n The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n <!– <\/p>\nFormer BlockFi CEO on the Witness Stand<\/strong><\/h2>\n
Underlying Factors in the Bankruptcy<\/strong><\/h2>\n
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