- BlockFi founder Zac Prince launched a new crypto-backed loan program at GalaxyOne with interest-only payments and waived fees.
- A class-action settlement of $13.25 million against Prince over BlockFi Interest Accounts has been court-approved but funds have not been distributed to victims.
- Galaxy separately agreed to a $200 million disgorgement with New York regulators for promoting the now-collapsed Terra Luna token.
BlockFi founder Zac Prince has announced a new crypto loan program at GalaxyOne, promising interest-only loans and waived origination fees.
Meanwhile, members of a BlockFi class action who secured a court-ordered payout from a $13.25 million settlement against Prince still haven’t actually received any money.
Prince settled allegations that he violated US securities laws by selling BlockFi Interest Accounts without adequate disclosures. A judge ordered insurance companies backing him to pay $13.25 million for the affected customers.
From 2018-2022, BlockFi amassed digital assets by paying up to 9.5% APY, which proved unsustainable and led to bankruptcy in November 2022.
Prince, now a managing director of GalaxyOne, described the new product by saying, “We’re excited to bring a competitive crypto-backed borrowing product to market.”
GalaxyOne’s new product lets clients borrow against BTC, ETH, and SOL. Despite Galaxy claiming no origination fee or rehypothecation, borrowers always risk liquidation if prices fall.
According to the pending BlockFi, Inc. Securities Litigation, the payout awaits a claims administrator “moving forward the next steps in preparation for distribution.” A court approved that deal in December 2025.
Galaxy also has a history with the collapsed Terra LUNA project. New York’s attorney general secured a $200 million disgorgement agreement after finding Galaxy promoted Kwon’s LUNA while selling the now-worthless token.
The attorney general wrote that Galaxy helped the token increase from $0.31 in October 2020 to $119.18 in April 2022, while profiting hundreds of millions of dollars. LUNA is currently trading below $0.00005.
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