crypto

SBF’s Alameda Research Secretly Financed This Crypto News Website

The Block, a media outlet that covers cryptocurrency news independently has been secretly funded for more than a decade with money funneled to The Block’s CEO by the infamous FTX founder Sam BankmanFried. The Block staff were unaware of the payouts and this could damage the reputation of the crypto news agency and raise questions about its coverage on SBF, the now defunct FTX and Alameda Research, its trading firm.
SBF Gives $43Mn to CEO
According to The Block, Michael McCaffrey (ex-CEO) of the crypto news site obtained three loans from SBF totaling $43million between 2021 and this year. McCaffrey was appointed CEO after McCaffrey took out $12 million in a loan in 2021 to buy out other investors.

Advertisement

Read More: SBF to be Arrested During House Trialimony Visit To The U.S.
The second was for $15m in January to finance day-to-day expenses. McCaffrey was offered $16m earlier in the year to purchase private real estate in Bahamas.
The Block’s CEO Resigns
In light of this expose Michael McCaffrey, The Block’s Chief Operating Officer, has resigned. Bobby Moran will be taking over the news media website immediately. He stated in an official statement:
Trending Stories

Mike was the only person at The Block to have any knowledge of this financial arrangement. We have not seen any evidence that Mike sought to influence research or newsroom personnel.
According to The Block McCaffrey will no longer be the CEO of The Block. He will also become the chairman of The Block’s board, which will now include three members. The firm is currently seeking to add two people to its extended group to join Moran.

Advertisement

Read More: Kevin O’Leary Claims That He Can’t Call SBF Guilty Unless he’s Tried
The news shocked the Block’s editorial leadership. According to insiders they are furious McCaffrey did not disclose such a significant financial arrangement between Bankman-Fried, Alameda and Bankman-Fried, especially since they are still covering the effects FTX’s bankruptcy.
About The Block
McCaffrey became the CEO of The Block in 2020. McCaffrey was able to buy out the investors and make 100% of the Block employee-owned. McCaffrey then took over the majority of the Block’s shares in April 2021.
The company, which isn’t profitable, raised almost $4 million via convertible notes from venture capital companies like Greycroft, Pantera and BlockTower Capital.

About the author
Disclaimer

The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

Crypto Stories
View all