BlockFi founder Zac Prince has addressed the issue of the company’s insolvency and outlined his plans for the future. Prince recently provided an update on the effectiveness of the bankruptcy process, stating that all funds have been distributed to BlockFi wallet users. He explained that he had remained silent until now to allow the process to proceed smoothly.
Prince also mentioned that the first payouts to customers with interest accounts have already started, with the possibility that they may receive up to 100% of their accounts. The amount paid to interest account customers will depend on the potential distribution from the FTX estate.
Reflecting on the situation, Prince admitted that he regrets not spotting the FTX scam earlier and changing BlockFi’s strategy to reduce its exposure to the insolvent trading platform. He emphasized that BlockFi’s bankruptcy was among the quickest and least costly compared to other crypto firms such as Celsius Network and Voyager Digital, which also declared bankruptcy in 2022.
However, the expenses incurred during the FTX bankruptcy have raised concerns about whether the firm’s attorneys are charging excessive fees to the creditors. Prince’s remarks shed light on the challenges faced by BlockFi and his efforts to navigate the insolvency process effectively.