The Block’s CEO resigned after failing to disclose that he received numerous loans from Sam Bankman-Fried’s Alameda Research.
As reported by The Block itself, the crypto news website’s own CEO Michael McCaffrey stepped down on Friday after other employees learned he received three loans from Alameda Research. McCaffrey, who will also resign from the company’s board of directors, has been replaced by chief revenue officer Bobby Moran effective immediately. However, McCaffrey will remain the firm’s majority shareholder.
“No one at The Block had any knowledge of this financial arrangement besides Mike,” explained Moran in a statement. “From our own experience, we have seen no evidence that Mike ever sought to improperly influence the newsroom or research teams, particularly in their coverage of SBF, FTX and Alameda Research.” One of the loans, in the amount of $12 million, was used to buy out the company’s other investors, while another $15 million was used to pay for the news site’s daily operations. The third loan from Alameda Research was to the tune of $16 million, of which McCaffrey used to purchase Bahamas real estate for himself.
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McCaffrey’s resignation comes in light of a cascading series of crypto fallouts, which were sparked by the high-profile implosion of disgraced SBF’s FTX empire.
Information for this briefing was found via The Block. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
