Zac Prince, former CEO and co-founder of bankrupt crypto lender BlockFi, has returned to the digital assets industry as head of Galaxy Digital's new banking platform Galaxy One. This appointment marks Prince's comeback to a leadership position less than three years after BlockFi's bankruptcy following the FTX collapse.
Galaxy hired Prince earlier this year to oversee Galaxy One, which launched today and enables users to earn yield on cash deposits while trading both cryptocurrencies and traditional stocks. The move positions Prince at the forefront of another initiative bridging crypto services with mainstream finance, though under significantly different circumstances.
In a Bloomberg interview, Prince stated his personal risk tolerance has become "more conservative" following his BlockFi experience. He described Galaxy as fundamentally different in terms of business setup, risk appetite, and regulatory frameworks.
BlockFi epitomized crypto lending's boom-and-bust cycle, attracting users with interest accounts offering up to 9.5% returns before collapsing due to liquidity shortages after FTX's failure. The company initially secured funding from prominent investment firms including Peter Thiel's Valar Ventures and Galaxy Digital, which led a substantial $52.5 million funding round in July 2018.
Following FTX's collapse in 2022, the SEC charged BlockFi with failing to register its lending product and misleading clients about risks. The company subsequently settled the case for $100 million in penalties.
For Mike Novogratz's Galaxy Digital, Galaxy One represents expansion into consumer-focused financial products. The platform's combination of traditional and digital asset services targets a market that has become more cautious and regulated since the previous crypto cycle's excesses.