The second week of Sam Bankman-Fried’s prison trial concluded with BlockFi CEO blaming FTX and Alameda for its chapter.
FTX founder Sam Bankman-Fried’s historic trial noticed the top of its second week right now. All through this week, the foremost key witness was Caroline Ellison, former CEO of Alameda Analysis and ex-girlfriend of SBF.
Ellison testified how Alameda was allowed to take limitless loans from FTX’s buyer funds, how Bankman-Fried used funds for political donations, his failed pursuit of Saudi funding and the way he bribed Chinese language officers.
Yesterday, Zac Prince, former CEO of bankrupt crypto alternate BlockFi, took the stand and acknowledged that his firm was pressured out of business by FTX and Alameda. In the present day he continued to share the main points in his testimony to the prosecutor.
Testimony of Zac Prince, Founder and CEO at BlockFi
- BlockFi was lending out round $5 to $10 billion {dollars} throughout the trade.
- BlockFi lent $1.1 billion to Alameda by Might 2022.
- After Terra LUNA collapsed, 3AC defaulted to BlockFi, whereas Voyager and Celcius went bankrupt. It precipitated important losses for BlockFi.
- BlockFi needed to promote itself to FTX to herald further capital and increase buyer confidence.
- FTX provided a $400 million credit score, with plans to completely purchase BlockFi by July 2023.
- BlockFI lent $850 million to Alameda between July to November 2022.
- Prince says that BlockFi wouldn’t have prolonged loans to Alameda if he had recognized in regards to the inside loans between Alameda and FTX.
- When the FTT token dropped, BlockFi known as again some loans, however there have been nonetheless $650 million excellent.
- BlockFi had $1.1 billion on the FTX alternate when it declared chapter.
- Zac Prince states that BlockFi was pressured out of business due to FTX and Alameda.
Prosecutors state that former co-lead engineer of FTX Nishad Singh will take the stand on Monday.