Zac Prince Returns to Crypto Spotlight: A Wildean Tale

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Finance

What to know:

  • The former BlockFi CEO Zac Prince is at the helm of Galaxy Digital’s new banking venture, Galaxy One.
  • BlockFi filed for bankruptcy after the FTX collapse and later settled SEC charges over unregistered products.
  • Galaxy’s move marks Prince’s return to crypto leadership after one of the sector’s most visible flops.

Zac Prince, the former chief executive and co-founder of BlockFi Inc., returns to the digital asset stage as the head of Galaxy Digital’s new banking platform, Galaxy One. The ascent reads like a flourish in a drawing-room comedy: less than three years have passed since BlockFi’s bankruptcy, which followed the spectacular implosion of FTX, a spectacle that could teach even a ledger some melodrama.

Galaxy hired Prince earlier this year to oversee Galaxy One, which launched today and allows users to earn yield on cash deposits and trade both cryptocurrencies and traditional equities. The appointment places Prince at the center of another flirtation between crypto services and mainstream finance-this time conducted under regulators’ polite glare rather than the previous circus under a moonlit marquee, darling.

In an interview with Bloomberg, Prince said his personal risk appetite is “more conservative” after what he experienced with BlockFi. He described Galaxy as “night and day in terms of the differences in the setup and the risk appetite and the regulatory structures of the businesses.” A noble comparison, to be sure, worthy of a handshake with a monocle and a sigh of relief 😂.

BlockFi became a symbol of crypto’s lending boom and bust. The company drew users by offering interest accounts with returns as high as 9.5%, before collapsing when FTX’s failure left it short of liquidity. In its early days, the company raised funding from the top investment firms, including Peter Thiel’s Valar Ventures as well as Galaxy Digital, which led a hefty $52.5 million round in July 2018. A performance worthy of a late-night novel, complete with finance and folly.

In 2022, after the collapse of FTX, the U.S. Securities and Exchange Commission charged BlockFi with failing to register its lending product and misleading clients about risks. The firm later settled the case, paying $100 million in penalties. Oh, the court’s gentle rustle of silk and sums that make even accountants swoon.

For Galaxy, led by investor Mike Novogratz, Galaxy One represents an expansion into consumer-focused financial products. The platform’s mix of traditional and digital asset services aims to meet a market that has grown more cautious and more regulated since the excesses of the last crypto cycle. A more restrained chorus, you might say, with fewer chandeliers and more compliance forms. 🚀🪙

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2025-10-06 21:47