Zac Prince launches GalaxyOne crypto loans as BlockFi settlement remains unpaid

BlockFi founder Zac Prince unveiled a fresh crypto lending initiative, aiming to draw in additional assets by offering interest-only loans, no origination fees, and various promotional incentives.

In the meantime, participants in a BlockFi class action who obtained a court-mandated settlement in their case against Prince have yet to receive any funds from the $13.25 million agreement.

Prince was named as a defendant in that lawsuit, settling claims that he breached US securities regulations by marketing BlockFi Interest Accounts without proper disclosures.

A court instructed the insurance firms covering Prince and his BlockFi executive team to disburse $13.25 million to this group of BlockFi clients.

As of now, individuals who choose to place their trust in Prince's latest offering, dubbed a "crypto portfolio line of credit" by GalaxyOne, can deposit as many digital assets with Prince's current employer as they wish.

Keen to gather as much capital as it can, Galaxy is offering customers fee waivers and interest-only repayment plans, ensuring depositors can optimise their financial leverage.

Between 2018 and 2022, BlockFi accumulated digital assets using its own methods, offering up to 9.5% APY to encourage incoming deposits. Those APY rates were clearly not sustainable, and the firm filed for bankruptcy in November 2022.

Prince, who now serves as a managing director at GalaxyOne, commented on his firm's latest crypto campaign, stating, “We’re excited to bring a competitive crypto-backed borrowing product to market.”

He highlighted the "competitive" nature of the fees.

Zac Prince returns with a new asset lending promo

GalaxyOne's latest offering allows customers to borrow against Bitcoin, Ether, and Solana. Although Galaxy asserts there is no origination fee or rehypothecation, borrowers still face the risk of having their collateral liquidated if market prices decline.

Galaxy positions these safeguards as its distinguishing features. However, they do not reduce the awkwardness of Prince's return to the stage.

Alongside BlockFi's high-APY interest accounts, Prince also operated BlockFi's crypto-backed lending programs. Both were discontinued four years ago.

Based on the ongoing BlockFi, Inc. Securities Litigation, the $13.25 million payout still awaits a claims administrator who is “moving forward the next steps in preparation for distribution.”

BlockFi's insurers are providing the $13.25 million fund, while Prince and the other defendants have formally waived any acknowledgment of wrongdoing.

A judge gave approval to that agreement in December 2025.

In the meantime, Prince continues to earn personal income by introducing variations of crypto loan products.

Galaxy's 2026 proxy statement does not reveal Prince's compensation, but he has seemingly returned to profiting from crypto lending prior to this group of BlockFi victims receiving their payouts.

Galaxy's past dealings with BlockFi and Terra LUNA

Regrettably, Galaxy also has a track record with another failed crypto venture, Terra LUNA, compounding its already embarrassing history with BlockFi.

Concerning Do Kwon's failed high-yield project Terra LUNA, the New York attorney general obtained a settlement mandating $200 million in disgorgement, having determined that Galaxy promoted Kwon's LUNA while also selling the now-valueless token.

In that settlement, Galaxy neither acknowledged nor refuted the findings.

The attorney general wrote, “Galaxy helped a little-known token increase its market price from $0.31 in October 2020 to $119.18 in April 2022, while profiting in the hundreds of millions of dollars.”

LUNA presently trades below $0.00005.

Galaxy is required to pay New York that disgorgement sum in four installments through 2028.