Zac Prince is managing Galaxy Digital's new banking platform.

Zac Prince Returns to the Crypto World

Former BlockFi CEO Zac Prince has taken the helm of Galaxy Digital's new banking initiative, Galaxy One. This appointment symbolizes Prince's return to crypto leadership nearly three years after BlockFi's bankruptcy. BlockFi filed for bankruptcy following the collapse of FTX and reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding unregistered products.

Galaxy One: A Combination of Crypto and Traditional Finance

Galaxy One allows users to earn yields on cash deposits and trade in both cryptocurrencies and traditional stocks. Galaxy Digital hired Prince earlier this year. In an interview with Bloomberg, Prince noted that his personal risk appetite is more cautious following his BlockFi experience. He also described Galaxy as a completely different model in terms of organizational structure and risk appetite.

BlockFi became a symbol of the crypto lending boom and bust. The company attracted users with accounts offering up to 9.5% interest; however, it faced liquidity issues after FTX's bankruptcy. In its early days, the company raised funds from leading investment firms like Peter Thiel's Valar Ventures. Additionally, Galaxy Digital led a $52.5 million investment round in July 2018.

After the collapse of FTX in 2022, the SEC accused BlockFi of failing to register its lending products and misleading customers about risks. The company agreed to pay a $100 million fine as a result of the lawsuit. Galaxy, under investor Mike Novogratz, aims to expand in the consumer-focused financial products space with Galaxy One. The platform's offerings of traditional and digital asset services target a more cautious and regulated market following the excesses of the last crypto cycle.