Mike Novogratz's Galaxy Digital has appointed Zac Prince, the founder and former CEO of the now-bankrupt crypto lending platform BlockFi, as its new managing director.
Prince returns to the cryptocurrency industry after a brief stint as CEO of real estate firm RE Cost Seg, where he focused on cost segregation studies and tax optimization for real estate investors. During his time away from crypto, he had expressed needing a break from the industry's volatility and even changed his social media presence to distance himself from his BlockFi past.
His previous venture, BlockFi, faced serious regulatory challenges and ultimately collapsed. The Securities and Exchange Commission found that BlockFi made false and misleading statements about its collateral practices between March 2019 and August 2021. The company agreed to pay $100 million in penalties to settle these charges.
During his tenure at BlockFi, Prince maintained close relationships with Sam Bankman-Fried's FTX and Alameda Research. The company marketed high-interest returns to customers who deposited bitcoin, ether, and stablecoins on the platform.
Despite BlockFi's troubled history, Galaxy Digital's CEO Mike Novogratz views Prince as a strong candidate to help develop the firm's services. This appointment adds Prince to a growing list of crypto executives who have returned to the industry after their initial ventures ended in bankruptcy.
The move marks Prince's full return to the digital asset space, following his temporary retreat to the real estate sector where he maintained a notably lower profile, primarily sharing customer testimonials rather than engaging in crypto discussions.