Mike Novogratz’s Galaxy Digital has hired BlockFi founder Zac Prince as a managing director. For some reason, Novogratz thinks Prince is an excellent candidate to assist with developing Galaxy’s services.
Prince was the CEO of failed digital asset lending company BlockFi. There, he nurtured close relationships with Sam Bankman-Fried’s FTX and Alameda Research. Prince’s company, which once advertised high-interest payouts to customers who lent it bitcoin, ether, and stablecoins, eventually collapsed as the world learned about BlockFi’s false and misleading statements about the safety of those assets.
According to the Securities and Exchange Commission, BlockFi lied about its collateral practices from March 4, 2019, to August 31, 2021, and agreed to pay $100 million in penalties for that and other misdeeds.
Read more: Unredacted document shows $1.2B in BlockFi assets linked to SBF
Zac Prince returns to crypto after real estate sabbatical
Since BlockFi’s bankruptcy and exiting social media for a few months, Prince returned to corporate life by joining real estate firm RE Cost Seg as its CEO. There, he helped lead cost segregation studies and other tools to help real estate investors seeking tax savings.
At the time of his departure from crypto, he cited a need to take a break from “the craziness and volatility of the industry.” He even used the handle @CostSegZac on X to gain some sort of privacy from his prior, BlockFi-branded handle @BlockFiZac.
During his time in real estate and eager to distance himself from digital assets, he mostly reposted testimonials from the company’s customers.
However, he apparently couldn’t stay away forever. He now joins the ranks of familiar names in the digital asset community who decided to try again after their first firm went bankrupt.
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Source: https://protos.com/blockfis-zac-prince-has-returned-to-work-in-crypto/