BlockFi, a crypto lending platform, has been facing some major challenges as part of an emergency restructuring plan last year.
This plan included borrowing $400 million from collapsed crypto exchange FTX. As a result, senior management lost around $800 million in equity, with BlockFi CEO and founder, Zac Prince, being the most affected, losing $412 million.
Despite these losses, the company decided to implement a “retention program” by increasing the salaries of top staff by up to 50%.
This was done in the interest of retaining “business critical knowledge and capabilities,” according to the company.
The filing also revealed that members of the executive team had stored over $2 million in individual accounts on the platform in the lead-up to its bankruptcy in November.
Prince had the most significant deposit within the management team, with $1.4 million on the platform as of November 21, 2022.
However, no member of the BlockFi management team withdrew any cryptocurrency from the platform after October 14, 2022, according to the filing. The management team withdrawals represented only 0.15% of the total volume in 2022.
