BlockFi is one of the companies that was affected by the crash of Three Arrows Capital, the crypto lending company that filed for bankruptcy in July. In an interview with The Scoop, the CEO of BlockFi, Zac Prince, bared his mind on the lessons that the company learned as a result of their exposure to 3AC and what the future could hold.
Why The Client Should Alway Be First
According to Prince, in their line of business, it is impossible to remain relevant if the company does not put the clients first. He said that he resolved that relegating the expectations of the customer would not happen under his watch as BlockFi CEO.
“You can’t screw over your clients and still have a business, period.”
About 3AC Liquidation
Regarding the 3AC crash, Prince said that despite filing for bankruptcy, there are high possibilities that the founders would still face criminal or civil lawsuits as a result of the failure of the company to meet the expectations of investors.
In his words,
“I also respect that these are still people and I hope that they’re doing okay, but there’s a whole mountain of legal and potentially civil and criminal things that they’ll be dealing with in the foreseeable future.”
How Things Have Changed
Prince acknowledged that risk management at BlockFi has changed since the crash of 3AC. The company was worth nearly $5 billion at the peak of the bull market. The crash necessitated a nod by the company’s shareholders for an acquisition by FTX US. The $680 million deal is considered a lifeline considering the losses incurred by BlockFi.
The BlockFi CEO is that among other things, the company is now acutely aware of the types of lending that should not be approved and the complexities involved in the collateralization of assets.