The CEO of BlockFi, Zac Prince, the crypto lender that was involved in the liquidation of Three Arrows Capital (3AC) said that there are lessons that his company came out with after 3AC announced that it was insolvent. In an interview with The Scoop.
The collapse of 3AC took the crypto space by surprise. As if it wasn’t enough shock, the lending platform’s failure affected several other cryptocurrency companies, especially those that are in the defi space as crypto lenders.
Putting The Clients First
In the interview, Prince said that the failure of a cryptocurrency lending platform starts when the operators do not give priority to their investors in terms of protecting their interest. According to him,
“I have a very fundamental belief that in the type of business that Blockfi is, you can’t screw over your clients and still have a business”
The BlockFi CEO said that he had long made up his mind that slacking on this principle is out of the question as long as he is in the helm of the affairs as BlockFi.
— Zac Prince (@BlockFiZac) August 31, 2022
Some Quick Lessons
He added that the failure of 3AC has made it even clearer to BlockFi that approving loans in a bull market. He added that the hashrate is up but the price of Bitcoin is down. He added that all these play a role in the health of the crypto lending space. He said that this is even important because BlockFi holds a mining portfolio of less than 10%.
Prince, whose company was directly involved in the liquidation of 3AC alluded to the fact that the founders may still be subject to litigation and criminal suits considering the circumstances behind the crash of the company.
“I also respect that these are still people and I hope that they’re doing okay, but there’s a whole mountain of legal and potentially civil and criminal things that they’ll be dealing with in the foreseeable future.””
Potential Acquisition By FTX
The shareholders of BlockFi recently voted to have the company acquired by the US based exchange FTX US. The acquisition has a clause that gives the company the option of acquiring BlockFi up to the tune of $240 million before the summer of 2022.
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