BlockFi founder Zac Prince has announced a new crypto loan program designed to attract assets with promotional offers, including interest-only loans and waived origination fees. Prince now serves as a managing director at GalaxyOne.
Meanwhile, members of a class-action lawsuit who secured a court-ordered payout from a $13.25 million settlement involving Prince and his former executive team have not yet received their funds. The settlement resolved allegations that Prince violated United States securities laws by selling BlockFi Interest Accounts without adequate disclosures. Under the agreement, which was approved by a judge in December 2025, insurance companies backing the executives must fund the $13.25 million pool. Defendants legally waived any admission of wrongdoing.
According to the ongoing BlockFi, Inc. Securities Litigation, the payout remains pending while a claims administrator prepares the next steps for distribution.
The new GalaxyOne product allows clients to borrow against Bitcoin, Ethereum, and Solana. Galaxy is offering fee waivers and interest-only payment options to encourage deposits and financial leverage. Between 2018 and 2022, BlockFi operated similar high-yield deposit and loan programs before filing for bankruptcy in November 2022.
In a separate matter involving Galaxy, New York's attorney general secured an agreement requiring Galaxy to pay $200 million in disgorgement over four installments through 2028. The investigation found that Galaxy promoted Do Kwon's Terra LUNA token while selling the asset, helping drive its market price before the project collapsed. Galaxy neither admitted nor denied the findings in that settlement.
