BlockFi CEO ignored dangers from FTX and Alameda publicity, contributing to break down: Court docket submitting

Zac Prince, the CEO of bankrupt cryptocurrency lending agency BlockFi, allegedly disregarded suggestions from the corporate’s threat administration group over lending belongings to Alameda Analysis.

In keeping with a July 14 submitting with the US Chapter Court docket for the District of New Jersey by the unsecured collectors’ committee, BlockFi’s threat administration group reported on the “excessive dangers” related to lending belongings to Alameda. Prince allegedly dismissed issues from the group on BlockFi lending Alameda $217 million by August 2021. The group steered there might be dangers if the (FTT) used to safe the loans wanted to be liquidated.

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