BlockFi, a leading crypto lender, has been making headlines lately. CEO Zac Prince announced that he cashed out close to $10 million from the platform to pay taxes last year.
The funds were made possible by a $400 million loan from FTX. Prince withdrew $9.2 million in April and an additional $1.36 million in August.
FTX filed for bankruptcy in November and provided $15 million to BlockFi insiders in June. The settlement was structured in a way that payments from BlockFi were routed through the executives and made to the counterparty.
BlockFi stated that no withdrawals of 0.2 BTC or greater have been made since August 17th. BlockFi is one of many companies that has taken out FTX loans.
Management has deployed their personal assets on the platform, to trade, earn interest, and store different cryptocurrencies.
The company has made clear that the withdrawals by insiders were made to pay taxes and not for personal gain.
It is encouraging to see companies take proactive measures to ensure the safety of their customers’ funds. The release of this information also shows that BlockFi is committed to transparency with their clients.
