The BlockFi Bankruptcy Blame Game: FTX and Alameda Under Fire

Discover the shocking revelations from the ongoing trial of FTX founder Sam Bankman-Fried, as BlockFi CEO Zac Prince points the finger at FTX and Alameda for his company's bankruptcy. Brace yourself for a rollercoaster of testimony and allegations that will leave you questioning the integrity of the crypto industry.

As the second week of Sam Bankman-Fried's historical trial came to a close, all eyes were on Caroline Ellison, the former CEO of Alameda Research and SBF's ex-girlfriend, who took the stand as a major key witness. Ellison's hair-raising testimony shed light on Alameda's unlimited access to FTX's customer funds, Bankman-Fried's questionable use of funds for political donations, his failed Saudi investment endeavors, and even allegations of bribing Chinese officials.

Yesterday, the courtroom drama escalated when BlockFi's own Zac Prince, the now-former CEO of the bankrupt cryptocurrency exchange, joined the stage. Prince wasted no time in pointing the blame squarely at FTX and Alameda, claiming that his company's downfall was the result of their actions. Today, Prince continued to unravel the details during his testimony, leaving spectators in awe.

The Testimony of Zac Prince, Founder and CEO at BlockFi

• BlockFi, a major lender in the industry, had an outstanding loan portfolio of around $5 to $10 billion.
• By May 2022, BlockFi had lent a staggering $1.1 billion to Alameda.
• The collapse of Terra LUNA had a domino effect, leading to 3AC defaulting on its loans to BlockFi while Voyager and Celsius filed for bankruptcy. These events inflicted substantial losses on BlockFi.
• In a bid to regain stability and restore customer confidence, BlockFi sought to sell itself to FTX, which promised an infusion of fresh capital and a complete acquisition by July 2023.
• Between July and November 2022, BlockFi extended additional loans amounting to $850 million to Alameda.
• Prince asserted that had he known about the internal loans between Alameda and FTX, BlockFi would have never extended its loans to Alameda.
• When the FTT token plummeted in value, BlockFi attempted to recall some loans, but approximately $650 million remained outstanding.
• Shockingly, at the time of its bankruptcy declaration, BlockFi had a staggering $1.1 billion held on the FTX exchange.
• Zac Prince boldly claims that the actions of FTX and Alameda forced BlockFi into bankruptcy.

Prepare for more jaw-dropping revelations, as prosecutors have announced that Nishad Singh, the former co-lead engineer of FTX, will take the stand on Monday. Stay tuned as the trial unfolds, exposing more shocking secrets in the world of cryptocurrency.