FTX and Alameda Behind BlockFi’s Chapter, SBF Trial Continues

• The trial of Sam Bankman-Fried continued with testimony from Zac Prince, former CEO of BlockFi.
• BlockFi suffered a $1 billion loss because of the chapter of FTX and Alameda Analysis, mentioned Prince.
• Prince talked about that had he recognized Alameda was utilizing FTX clients’ cash, he wouldn’t have lent to them.

The trial of Sam Bankman-Fried continued with Zac Prince, former chief government officer of defunct crypto lender BlockFi. BlockFi was one in every of Alameda Analysis’s lenders, and the chapter of FTX and Alameda reportedly led to BlockFi shedding $1 billion, which resulted in its personal chapter.

Prince’s testimony highlighted the transparency of his lending enterprise, how BlockFi “had an rising stage of consolation with Bankman-Fried”, and the way BlockFi gave a number of loans to Alameda. Prince shared that if he had recognized Alameda was utilizing FTX buyer cash, he wouldn’t have lent it to Alameda because it was “not acceptable.”

Alameda paid BlockFi roughly $150 million in 2022, based on Prince, but on the time of submitting chapter, Alameda nonetheless owed BlockFi about $650 million. Furthermore, Prince shared that just about $350 million of BlockFi’s funds have been held on FTX. He additionally shared that when BlockFi realized it couldn’t entry its funds on FTX and Alameda couldn’t repay its loans, BlockFi filed for chapter.

On a associated observe, SBF’s attorneys submitted a letter in regard to the defendant’s medicines. The attorneys mentioned:

The protection has a rising concern that, due to Mr. Bankman-Fried’s lack of entry to Adderall, he has not been in a position to focus on the stage he ordinarily would and that he won’t be able to meaningfully take part within the presentation of the protection case.

Citing the attorneys’ declare that SBF isn’t having his prescribed dose of Adderall throughout trial hours, crypto detective Coffeezilla shared the letter and referred to as it “The Adderall protection.”

The general public’s response to this diversified, as some folks referred to as Bankman-Fried “an addict,” and a few thought the request to be affordable. One consumer mentioned, “I take a stimulant for ADHD, and it could be troublesome to testify for hours with out it.”