Unchained SBF Trial, Day 8: Former BlockFi CEO Adds Credibility to Fraud Charges
Oct 13, 2023
The trial heats up as the former BlockFi CEO takes the stand, revealing stark contrasts between BlockFi's practices and the secretive operations of FTX. He asserts that the collapse of SBF's empire directly led to BlockFi's bankruptcy, countering defense claims. Key testimony exposes failures in crypto lending practices and how Alameda's dealings with FTX ultimately harmed BlockFi. The courtroom drama unfolds as the defense struggles to place fault elsewhere, while the implications for the crypto world loom large.
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Transparency in Lending
- Zac Prince's testimony highlighted the contrast between BlockFi's transparency and FTX's secrecy in lending.
- His testimony emphasized how BlockFi's increasing trust in SBF led to substantial loans and a planned acquisition, ultimately contributing to their bankruptcy.
BlockFi's Lending to Alameda
- BlockFi's credit team advised against increasing Alameda's borrowing limit in 2021.
- Despite this, BlockFi CEO Zac Prince clarified that they didn't make the specific loan discussed, but later loans were indeed made.
BlockFi's Bankruptcy
- The defense questioned if BlockFi's bankruptcy was inevitable, regardless of FTX's collapse.
- Prince maintained that FTX and Alameda's downfall created a $1 billion hole, leading to BlockFi's bankruptcy.