FTX Loan Wiped out $800M in BlockFi Executives' Equity

The crypto lender BlockFi has released its financial statements. The filing details the impact of a loan from FTX last June on 13 of BlockFi's top executives. The loan saw BlockFi executives' equity holdings wiped out by a total $800 million.

Founder and chief executive Zac Prince, for example, saw $413 million in equity value eliminated, and was compensated by a salary hike of between $250,000 and $400,000, while others were offered a raise as much as $560,000, the filings said.

No member of the BlockFi management team withdrew any cryptocurrency from the platform after Oct. 14, the filing said, and the management team represented just 0.15% of the $7.7 billion in retail withdrawals over the year.

But the filings nonetheless reveal significant withdrawals made by senior management – including over $9 million taken out of the platform by Prince in April, which the filing said was to pay U.S. federal and state taxes, and his withdrawal of just over $870,000 in August.

Most transaction data is anonymized, with the court due to consider next week whether to unseal creditor information.