BlockFi CEO Testifies Against FTX and Alameda in Sam Bankman-Fried’s Trial
In the second week of Sam Bankman-Fried’s criminal trial, BlockFi CEO Zac Prince accused FTX and Alameda of forcing his company into bankruptcy. The trial, which has gained significant attention, featured Caroline Ellison, former CEO of Alameda Research and Bankman-Fried’s ex-girlfriend, as the key witness. Ellison revealed how Alameda took unlimited loans from FTX’s customer funds, Bankman-Fried’s misuse of funds for political donations, failed investment attempts, and bribery allegations.
Testimony of Zac Prince, Founder and CEO at BlockFi
- BlockFi lent $1.1 billion to Alameda by May 2022.
- BlockFi suffered significant losses due to defaults by 3AC after Terra LUNA collapsed and bankruptcies of Voyager and Celcius.
- BlockFi sought to sell itself to FTX for additional capital and customer confidence.
- FTX offered a $400 million credit and planned to fully acquire BlockFi by July 2023.
- Between July and November 2022, BlockFi lent $850 million to Alameda.
- Zac Prince claims he wouldn’t have extended loans to Alameda if he had known about their internal loans with FTX.
- Despite calling back some loans when the FTT token dropped, there were still $650 million outstanding.
- At the time of bankruptcy, BlockFi had $1.1 billion on the FTX exchange.
- Zac Prince blames FTX and Alameda for forcing BlockFi into bankruptcy.
The prosecution plans to call Nishad Singh, former co-lead engineer of FTX, as the next witness on Monday.
Hot Take: BlockFi’s Testimony Adds Complexity to Bankman-Fried’s Trial
Zac Prince’s testimony in Sam Bankman-Fried’s trial has intensified the case against FTX and Alameda. His claims of being forced into bankruptcy by the two entities shed light on their alleged role in BlockFi’s financial troubles. As the trial continues, it becomes increasingly apparent that multiple parties are involved in the web of accusations and questionable financial practices. The outcome of this trial could have significant implications for the reputation and future operations of FTX and Alameda, as well as other players in the crypto industry. All eyes will be on the upcoming testimonies and evidence presented in court.
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