BlockFi CEO Zac Prince testified in the criminal trial of former FTX CEO Sam Bankman-Fried, providing details about BlockFi’s lending relationship with Alameda Research. Prince revealed that Alameda began to dominate BlockFi’s lending activities, and he had conversations with Bankman-Fried regarding the loans. BlockFi had lent out billions of dollars to its clients, with Alameda initially borrowing $10 million and eventually increasing to $1.1 billion. Prince also mentioned that BlockFi attempted to have FTX acquire it but denied that the decision to lend money to Alameda was solely influenced by that arrangement. Prosecutors presented Alameda’s Q2 2022 balance sheet, which Prince claimed he was told included loans from other crypto lenders, not FTX. If Prince had known about FTX’s loans to Alameda, he stated that BlockFi would not have lent money as it would have been insolvent. Prince also expressed concern if he had known about Alameda’s loans to Bankman-Fried. During cross-examination, it was highlighted that both BlockFi and FTX lent out customer assets, but Prince clarified that BlockFi only did so with customer agreement. The trial will continue with further testimonies from FTX associates.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Sam Bankman-Fried, Zac Prince |
| Companies | Robinhood, BlockFi, Bankman-Fried, Luna, FTT token, TerraUSD, FTX, U.S. government, Grayscale Trust, Voyager, Celsius, Three Arrows Capital, Alameda Research |
| Currencies | FTX |
| Securities | None |
