Michael McCaffrey, the Chief Executive Officer (CEO) of crypto media site The Block has resigned from his position as he failed to disclose information about his connection with Sam Bankman-Fried Alameda Research. Based on a report, it has been discovered that the former CEO of FTX Bankman-Fried took funds from Alameda Research to secretly invest in The Block through McCaffrey.
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Effective immediately, Bobby Moran, The Block’s Chief Revenue Officer will take over as CEO. According to Moran, while McCaffrey has had some hidden transactions with FTX and its sister trading firm, there is no evidence that the coverage of FTX, Bankman-Fried or any other related entities on the crypto media website was in any way improperly influenced.
McCaffrey Received Three Loans From SBF
Before this time, the employees were not aware of the series of loans from Alameda Research.
However, Moran mentioned that at a certain time McCaffrey rolled out an executive decision to restructure the firm. To achieve this, he had to bring in two loans that amounted to $27 million from Alameda Research. The third loan was a $16 million capital which was used by McCaffrey to acquire a property in the Bahamas.
“No one at The Block had any knowledge of this financial arrangement besides Mike,” said Moran. “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,” Moran said
Moran attested to the fact that McCaffrey had told him all these before Thanksgiving a few weeks ago. Now that the news is now in the open, there are concerns that it may lead to a conflict of interest among the employees. The Block leadership team is shocked at the revelation and has said that it shows a serious lack of judgment on the part of the former CEO.
Moran added, “It undermines The Block’s reputation and credibility, especially that of our reporters and researchers, as well as our efforts at industry-leading transparency.”
Meanwhile, after stepping down as CEO of his firm, Bankman-Fried is still under serious scrutiny from regulators all over the globe.
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