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Zac Prince, the founder of BlockFi and former CEO, will leave the company to join Re-Cost Seg..

I considered starting a new crypto company after BlockFi. Prince said in an interview that he was as passionate and as invested in the crypto space as he had been when launching BlockFi. My wife warned me against it because of the volatility and craziness in the crypto industry. She suggested that I do something more low-key.

Prince is now at Re Cost Seg. He heard about the opportunity via X. Re Cost Seg offers cost segregation analyses for real estate investors. This allows them to save money and accelerate depreciation of their properties.

These services are usually only available to larger institutional landlords because of their high cost. They are out of reach for “Mom and Pop”, which makes up 70 percent of residential rental owners according to National Association of Realtors data.

Prince added that the company was democratizing access for these cost-segregation studies. Prince also noted similarities with BlockFi’s tax-efficient use of crypto proceeds. “Our products can save you money in taxes, and nobody wants to pay higher taxes. Everyone loves to save money on taxes.

Prince says he learned many lessons during BlockFi’s heyday that he could apply to Re Cost Seg. For example, a customer-focused approach is important.

He said, “We were the very first crypto-lending company to offer a telephone number for people to call.”

Prince said he also wants to bring the fast-paced development cycle of crypto to TradFi’s real estate.

He said, “In just five years we have launched four products for consumers, an institutional platform and internal tools and processes to ensure efficient product development.”

He continued, “In marketing, cryptocurrency is unique because of its 24/7 media cycle. Learning to navigate this and developing strategies was key.” I learned a great deal about teamwork. We had an amazing team at BlockFi. Many of them are still in the crypto world, and others have started their own crypto companies. This makes me very proud.

Block Fi

Prince says that even though he has left BlockFi, his cryptocurrency will remain on the platform as long as all former BlockFi clients are made whole.

As part of our bankruptcy procedure, I kept all my cryptos at BlockFi. He said he would give up all rights to recover his crypto until BlockFi’s clients got 100% of their money back.

Prince said in the interview that BlockFi failed because FTX, and its affiliates, were lent money – this arrangement was fully disclosed by BlockFi’s terms and Conditions – and did not pay it back . He also stated the same thing on the witness stand at Sam Bankman-Fried’s trial.

He said: “At first, FTX lawyers took a hostile stance, claiming BlockFi owed money. We found this absurd, since FTX, and its affiliates, owed us money.” It’s gratifying to see that the result was in BlockFi’s favor. The impact on clients’ recoveries will be significant.

Prince wrote on X that he had many things he wished he could have done differently. However, the relationship between BlockFi and FTX was most important.

He wrote: “I testified in the SBF trial which enabled justice by a guilty verdict. But the real goal for me and the rest of the BlockFi team was and is to provide as much value as possible to our clients.”

BlockFi’s bankruptcy seemed to be a long way off. For a time, BlockFi made its clients whole. It didn’t appear realistic. In January 2023 during the dark crypto winter days, bankruptcy claims were trading for 30 cents per dollar.

Prince concluded, “The people who bought the bankruptcy claims have made a fortune.”

Parikshit Miishra is the editor.