Galaxy Digital executive Zac Prince launches new crypto loan program as BlockFi payouts remain delayed
Zac Prince introduces new crypto loan product at Galaxy Digital
Zac Prince, a managing director at Galaxy Digital, has launched a new crypto-backed loan program called "crypto portfolio line of credit" through GalaxyOne. This product allows customers to borrow against digital assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The program offers interest-only loans and waived origination fees as promotional incentives.
Prince is the former CEO of BlockFi, a crypto lending company that collapsed in November 2022. BlockFi had previously offered high-interest accounts and crypto-backed loans, which were shut down after the company filed for bankruptcy.
Key details of the new loan program
- The new loan product is offered by GalaxyOne, a division of Galaxy Digital.
- Customers can borrow against BTC, ETH, and SOL.
- Promotional offers include no origination fees and interest-only payment options.
- Borrowers risk losing their collateral if the value of their digital assets drops significantly.
BlockFi customers still waiting for settlement payouts
A class-action lawsuit against Prince and other BlockFi executives resulted in a $13.25 million court-ordered settlement in December 2025. The settlement resolved allegations that BlockFi violated U.S. securities laws by selling BlockFi Interest Accounts without proper disclosures. However, as of August 2026, none of the affected customers have received their payouts.
The settlement is funded by insurance companies backing Prince and his executive team, and the defendants did not admit any wrongdoing. A claims administrator is reportedly preparing the distribution process, but no timeline has been provided.
Galaxy Digital’s past ties to failed crypto projects
Galaxy Digital, Prince’s current employer, has previously been involved with other collapsed crypto projects. In 2025, the New York Attorney General secured a $200 million settlement from Galaxy Digital for its role in promoting Terra LUNA, a high-yield crypto scheme that collapsed in 2022. The settlement required Galaxy to pay the amount in installments through 2028 without admitting or denying the findings.
What is confirmed
- Zac Prince has launched a new crypto-backed loan product at Galaxy Digital.
- A $13.25 million settlement was approved in December 2025 for BlockFi customers in a class-action lawsuit against Prince and other executives.
- No payouts from the BlockFi settlement have been distributed as of August 2026.
- Galaxy Digital was involved in a $200 million settlement related to its promotion of Terra LUNA.
What is still unclear
- The exact timeline for distributing the $13.25 million settlement to BlockFi customers.
- Zac Prince’s compensation details for his role at Galaxy Digital, as they are not disclosed in the company’s 2026 proxy filing.
Why this matters for crypto users
The launch of GalaxyOne’s new loan product highlights the ongoing demand for crypto-backed financial services. However, the delay in payouts for BlockFi customers serves as a reminder of the risks involved in crypto lending platforms, particularly those with histories of regulatory issues or collapse.
Galaxy Digital’s past involvement with failed projects like Terra LUNA and BlockFi may also raise questions for potential customers considering its new loan program.
