The ongoing trial of Sam Bankman-Fried saw the testimony of Zac Prince, the former CEO of the now-defunct crypto lending platform, BlockFi.
BlockFi had been one of the lenders associated with Alameda Research, and the financial turmoil stemming from the bankruptcy of FTX and Alameda had reportedly caused BlockFi to lose a staggering $1 billion, ultimately leading to its own bankruptcy.
Prince’s testimony shed light on the transparency of BlockFi’s lending operations, emphasizing the growing level of trust they had in Bankman-Fried. BlockFi had extended numerous loans to Alameda. Prince revealed that had he been aware that Alameda was using customer funds from FTX, he would not have lent money to them, deeming it an inappropriate practice.
In 2022, Alameda had paid BlockFi roughly $150 million, according to Prince’s statements. However, at the time of their bankruptcy filing, Alameda still had an outstanding debt of approximately $650 million to BlockFi. Furthermore, Prince disclosed that nearly $350 million of BlockFi’s funds were tied up in FTX. When BlockFi realized it couldn’t access these funds on FTX, and Alameda couldn’t repay its loans, the company had no choice but to file for bankruptcy.
Meanwhile, SBF’s legal team submitted a letter regarding the defendant’s medication. The lawyers expressed concerns that Bankman-Fried’s inability to access his prescribed Adderall had hindered his ability to concentrate at his usual level and participate effectively in the defense proceedings.
In response to the lawyers’ claim that SBF was not receiving his prescribed dose of Adderall during trial hours, the crypto investigator known as Coffeezilla shared the letter and coined it “The Adderall defense.”
The public’s reaction to this development was mixed, with some labeling Bankman-Fried as an “addict,” while others regarded the request as reasonable. One user empathized, saying, “I take a stimulant for ADHD, and it would be difficult to testify for hours without it.”