Zac Prince, former CEO and co-founder of Collapsed Crypto Lender Blockfi Inc., is back in the digital asset industry as head of Galaxy One, Galaxy Digital’s new banking platform. The move shows Prince returned to his leadership role within three years of Blockfi’s bankruptcy following the collapse of Crypto Exchange FTX.
The Galaxy hired Prince to oversee Galaxy One earlier this year. It was launched today, allowing users to earn returns on cash deposits and trade both cryptocurrency and traditional stocks. This appointment places the prince at the heart of another effort to integrate crypto services with mainstream finance, but this time under significantly different conditions.
In an interview with Bloomberg, Prince said he was “more conservative” after his personal risk preferences were experienced at Brockfee. He described the Galaxy as “in terms of setup differences and risk appeal and business regulatory structure.”
Blockfi has become a symbol of Crypto’s lending boom and bust. The company attracted users by offering interest accounts with a return of 9.5% before FTX failure collapsed when it lacked liquidity. In the early days, the company raised funds from top investment companies, including Peter Tiel’s Valor Venture and Galaxy Digital, which led a major round of $52.5 million in July 2018.
In 2022, after the collapse of FTX, the US Securities and Exchange Commission accused a client of misleading risks after failing to register loan products with Bullock Fi. The company later settled the lawsuit and paid a $100 million penalty.
For Galaxy, led by investor Mike Novogratz, the Galaxy One represents an expansion into consumer-centric financial products. The combination of traditional asset services and digital asset services platforms is aimed at meeting a more discreet and regulated market since the last surplus of crypto cycles.
