Zac Prince's Departure From Crypto Signals Confidence in BlockFi's Future

Zac Prince, the founder of BlockFi, is making a significant career pivot. He’s leaving the cryptocurrency industry entirely to join Re Cost Seg, a real estate technology startup focused on cost segregation studies. This move represents more than just a job change—it reflects a carefully considered decision about the future and a vote of confidence in BlockFi’s ongoing recovery from its FTX-related collapse.

From Crypto Lending to Real Estate Innovation

The transition marks an intriguing turn for a figure who built one of crypto’s most recognizable lending platforms. Prince explained that he initially considered starting another crypto company. “I’m passionate about the space and believe in it as much as when I started BlockFi,” he told CoinDesk. However, his wife’s perspective shifted his calculus. She pointed out the relentless volatility and stress inherent to cryptocurrency, suggesting he pursue something less demanding.

Re Cost Seg capitalizes on a significant market inefficiency. The company provides cost segregation services that traditionally have been available only to large institutional real estate investors due to prohibitive costs. This restriction leaves out roughly 70% of the residential rental market—the “Mom and Pop” landlords who dominate American real estate ownership according to the National Association of Realtors.

Prince sees parallels between his work at BlockFi and this new venture. Both companies democratize financial services. “This company is democratizing access to these cost segregation studies,” he said. “Our products will save you money on taxes, and everybody loves saving money on taxes.”

Why Family Wisdom Beat Industry Passion

The decision to exit crypto after years of passionate advocacy speaks volumes. Prince had the credibility and network to launch another blockchain venture, yet he chose a traditional finance innovation instead. This wasn’t about losing faith in cryptocurrency—it was about choosing a different pace and lifestyle.

At BlockFi, he had experienced both the exhilaration and exhaustion of the crypto sector’s frantic development cycle. The company launched four consumer-facing products and an institutional platform within five years, along with developing internal tools that enabled rapid iteration. That speed came at a cost in terms of personal stress.

Bringing Crypto’s Strategic DNA to Traditional Finance

Interestingly, Prince plans to transplant crypto’s operational playbook into real estate tech. The speed, innovation mindset, and marketing strategies he developed in crypto will inform Re Cost Seg’s approach. “In marketing, crypto is unique with its 24/7 media cycle,” he explained. Learning to navigate that landscape and develop strategies like podcast partnerships had proven invaluable.

Beyond marketing, Prince emphasizes customer service fundamentals that BlockFi pioneered. “We were the first company in the crypto lending category to have a phone number that people could call,” he noted. Such basics, taken for granted elsewhere, were novel in crypto. He also credits his BlockFi team with shaping his leadership philosophy—many members remain in crypto or have started their own companies, of which he’s proud.

BlockFi’s Comeback Story Nears Completion

Prince’s ability to move forward confidently suggests BlockFi has turned a critical corner. The lender is approaching full recovery for its users—a prospect that seemed impossible just years ago. In January 2023, during crypto’s darkest winter, bankruptcy claims for BlockFi were trading at 30 cents on the dollar. Those who purchased those claims made substantial returns.

The turning point came through the settlement with the estates of FTX and Alameda Research. After FTX and its affiliate entities failed to repay loans to BlockFi (an arrangement fully disclosed in BlockFi’s terms), the platforms’ collapse triggered BlockFi’s insolvency. Prince testified during Sam Bankman-Fried’s trial about these lending arrangements and FTX’s failure to honor its obligations.

“It’s validating to see the outcome in BlockFi’s favor, and the impact on client recoveries is significant,” Prince said. The legal victory reversed what initially seemed like hostility from FTX’s lawyers, who claimed BlockFi owed them money—a position Prince found “absurd” since the reality was the opposite.

The Last One Out the Door

Despite his departure, Prince remains financially invested in BlockFi’s success. He committed to keeping his cryptocurrency holdings on the platform until all former clients receive 100% of their deposits back. In essence, he forfeited any recovery rights to his own assets to ensure clients are made whole first.

This gesture underscores his confidence in the settlement’s trajectory. He reflected on what he would do differently, identifying the FTX relationship as the primary regret. Yet his focus remains fixed on the real achievement: ensuring clients recover their full value.

For Prince personally, the next chapter in real estate technology offers a different kind of challenge—one with less volatility but perhaps more stability. For BlockFi, his departure with dignity and continued commitment signals that the organization’s future has solidified enough that even its founder can confidently move on.