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Wang, 30, is one of three FTX insiders who have pleaded guilty to fraud charges and entered a cooperation agreement with the government. Wang testified on Thursday that while at FTX, he created software code at the direction of Bankman-Fried that gave "special privileges" to Alameda, allowing it to withdraw unlimited funds. While Wang is the first cooperator to take the stand, jurors have so far heard from three other witnesses. He said Bankman-Fried appeared worried and told him the companies were "not bulletproof" as they had been the year before. Zac Prince, the founder of crypto lender BlockFi, is among the witnesses expected to testify after Wang finishes when the trial resumes next Tuesday.

Persons: Sam Bankman, Eduardo Munoz, Gary Wang, Wang, Fried, FTX, Matt Huang, Adam Yedidia, Zac Prince, Jody Godoy, David Gregorio Our Organizations: REUTERS, Alameda Research, Prosecutors, Alameda, Thomson Locations: New York, U.S, Alameda, FTX

On day one of Sam Bankman-Fried's criminal trial, assistant U.S. attorney, Danielle Sassoon, rattled off a lengthy list of potential witnesses who might be called to testify for either the government or the defense. The list, which was compiled jointly by both sides, was released during the afternoon session and included Bankman-Fried's brother, Gabe, as well his parents, Allan Joseph Bankman and his wife, Barbara Fried. Parents of the disgraced former CEO of FTX are themselves the subject of new scrutiny. Other entities that may take the witness stand included various venture funds and crypto-focused companies like Genesis, Lightspeed Venture Partners, Ontario Teachers Pension Fund, Third Point, Signature Bank, and Voyager Digital. Many of these businesses were hurt or wiped out by the collapse in cryptocurrency prices triggered in part by FTX's implosion.

Persons: Sam Bankman, Danielle Sassoon, Gabe, Allan Joseph Bankman, Barbara Fried, Ellison, FTX, Wang, Anthony Scaramucci, Fried Alfred Lin, Sequoia Capital Zac Prince, Michael Lewis Organizations: Alameda Research, U.S, SkyBridge, Sequoia Capital, Lightspeed Venture Partners, Ontario, Pension Fund, Signature Bank, Voyager Locations: Bankman, Manhattan

☆ Warren, AOC press top Silicon Valley Bank depositors about any cushy treatment they received
▼ + stars: | 2023-04-10 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

WASHINGTON — Two top progressive lawmakers questioned whether Silicon Valley Bank offered its largest depositors unusually cushy treatment, one month after the institution collapsed and sparked broader damage to the banking system. "Silicon Valley Bank's unusually cozy relationship with its clients increased the threat of contagion when the bank went under," Warren said in a statement. "The American people deserve to know how these mutual backscratching arrangements developed, who benefitted from them, and what role they played in Silicon Valley Bank's failure." Over 95% of the bank's deposits were uninsured as of December, which threatened companies' ability to make payroll after the bank failed. Warren and Ocasio-Cortez asked the depositors to provide details on any special treatment they received from SVB by April 24.

☆ BlockFi's CEO cashed out $9 million from the crypto platform just after FTX gave it a multimilllion-dollar support loan
▼ + stars: | 2023-01-10 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

BlockFi CEO Zac Prince withdrew over $9 million from the company thanks to an FTX support loan, the Block reported. He cashed out the millions in order to pay US federal and state taxes, according to a company presentation. Collapsed exchange FTX loaned BlockFi $400 million last year in an effort to save the struggling firm. His assets with the company fell to $3.04 million in April 2022 from $13.15 million the previous month, the figures show. The firm told The Block: "Like many BlockFi clients, Zac deployed his own personal assets on BlockFi's platform.

☆ BlockFi says it repaid investor $15 mln to settle over crypto crash
▼ + stars: | 2023-01-09 | by ( Dietrich Knauth | ) www.reuters.com time to read: +3 min

Jan 9 (Reuters) - Executives of bankrupt crypto lender BlockFi Inc have repaid an investor $15 million to settle a threatened lawsuit over the company's cratering equity value in summer 2022, the company's attorneys said Monday in bankruptcy court. The BlockFi investor threatened to sue, alleging that BlockFi and its executives should have been more transparent about contagion risks in the cryptocurrency market, according to Sussberg. BlockFi believed the investor's claims were "specious," but it reached a confidential settlement on Aug. 23 under which BlockFi executives repaid $15 million to the investor, Sussberg said. That loan gave FTX an option to buy BlockFi for $240 million, essentially setting a maximum value for existing equity. As the company's value plummeted, BlockFi laid off 20% of its employees.

☆ The unraveling of $3 billion crypto lender BlockFi amid FTX's 'death spiral', according to bankruptcy filings
▼ + stars: | 2022-12-03 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +5 min

The crypto platform owes $30 million to the SEC, per bankruptcy filings. FTX, which once offered BlockFi a $400 million credit line, ultimately led to the firm's bankruptcy. BlockFi cited significant exposure to Sam Bankman-Fried's crypto empire, which filed for bankruptcy on November 11. Ironically, once FTX's "death spiral" began, BlockFi's liquidity crisis ensued and the company paused user account withdrawals on its platform. Due to the loan agreement and $355 million in digital assets held on FTX, BlockFi had substantial exposure.

☆ BlockFi makes first appearance in bankruptcy court
▼ + stars: | 2022-11-29 | by ( Dietrich Knauth | ) www.reuters.com time to read: +3 min

Nov 29 (Reuters) - U.S. cryptocurrency lender BlockFi on Tuesday will make its first appearance in U.S. bankruptcy court after filing for Chapter 11 protection on Monday. BlockFi is expected to tell U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey why it went bankrupt and how it plans to exit from Chapter 11. New Jersey-based BlockFi became the first direct casualty of crypto exchange FTX's collapse earlier this month. The company sold a portion of its crypto assets earlier in November to fund its bankruptcy, and it entered bankruptcy with $256.5 million in cash on hand. BlockFi's Chapter 11 plan envisages that BlockFi Wallet customers would be paid back in full and other account holders and creditors would receive a mixture of cryptocurrency, cash, and new equity shares.

☆ Bitfront: The crypto winter claims another casualty after FTX's collapse
▼ + stars: | 2022-11-29 | by ( Diksha Madhok | ) edition.cnn.com time to read: +2 min

New Delhi CNN Business —Bitfront, a crypto exchange backed by Japanese social media app Line, is shutting down after failing to overcome turmoil in the industry. The announcement by the US-based exchange comes at a time when the market for digital assets is grappling with financial contagion unleashed by the spectacular collapse of another crypto exchange, FTX. Its decision to shut down the exchange came on the same day crypto lender BlockFi filed for bankruptcy. BlockFi, founded in 2017 by Zac Prince and Flori Marquez, made loans to customers using crypto assets as collateral. Shortly after filing for Chapter 11, BlockFi filed a lawsuit against FTX founder Sam Bankman-Fried’s Emergent Fidelity Technologies, demanding he turn over collateral that BlockFi claims it is owed.

New Jersey-based BlockFi, founded by fintech executive-turned-crypto entrepreneur Zac Prince, said in a bankruptcy filing that its substantial exposure to FTX created a liquidity crisis. BlockFi listed its assets and liabilities as being between $1 billion and $10 billion. Renzi said that BlockFi had sold a portion of its crypto assets earlier in November to fund its bankruptcy. In a court filing on Monday, BlockFi listed FTX as its second-largest creditor, with $275 million owed on a loan extended earlier this year. In its bankruptcy filing, BlockFi said it had hired Kirkland & Ellis and Haynes & Boone as bankruptcy counsel.

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New Jersey-based BlockFi, founded by Zac Prince, said in a bankruptcy filing that its substantial exposure to FTX created a liquidity crisis. In a court filing on Monday, BlockFi listed FTX as its second-largest creditor, with $275 million owed on a loan extended earlier this year. Crypto lenders, the de facto banks of the crypto world, boomed during the pandemic, attracting retail customers with double-digit rates in return for their cryptocurrency deposits. Crypto lenders are not required to hold capital or liquidity buffers like traditional lenders and some found themselves exposed when a shortage of collateral forced them - and their customers - to shoulder large losses. In its bankruptcy filing, BlockFi said it had hired Kirkland & Ellis and Haynes & Boone as bankruptcy counsel and Berkeley Research Group as a financial adviser.

Institutional crypto lending involves lending cryptocurrencies as well as cash in return for a yield. Unsecured lending has become common across the crypto industry, according to the review of filings and the interviews. Crypto research firm Arkham Intelligence put the figure in the region of $10 billion, for instance, while crypto lender TrueFi said at least $25 billion. BULLISH ON BORROWINGWhile Blockchain.com has largely pulled back from unsecured lending, many crypto lenders remain confident about the practice. Sid Powell, co-founder and CEO of unsecured crypto lending platform Maple, said institutional crypto lenders were more cautious after Three Arrows' insolvency, but conditions have since normalized and lenders are now again comfortable lending unsecured.

The BlockFi Rewards Visa® Signature Card initially launched with an annual fee, but it's been removed. Deciding whether to open a Bitcoin credit card relies on understanding the volatility of the market. Does the BlockFi Rewards Visa® Signature Card have an annual fee? Ultimately, this is the most important question in helping you determine whether this new BlockFi card — or any crypto-based rewards credit card — is a good fit for your finances. It's a bit more work — with additional implications on your personal finances — to open and close a credit card.

☆ Bitcoin is about to change the definition of card rewards, and it's good news if you're 'crypto-curious' but afraid of risking your own money
▼ + stars: | 2020-12-29 | by ( David Mcmillin | Read More | Read Less | ) www.businessinsider.com time to read: +13 min

The two early entrants are a credit card from BlockFi and a prepaid card from Fold with different structures for earning. Prince is now focused on changing rewards with the company's new Bitcoin Rewards Credit Card. "Credit card rewards points are meant to be spent, ideally as quickly as possible," Prince says. That's a big shift, but Prince thinks it's only the beginning for transforming credit card rewards. Note that credit card lenders may use many different variations of credit score models when considering your application.

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