Cryptocurrency information outlet The Block’s CEO has stepped down following revelations of undisclosed loans from disgraced FTX CEO Sam Bankman-Fried’s hedge fund, Alameda Analysis.
Per a report by Axios, no one else on the firm was conscious of those loans, made to LLCs beneath management by the corporate’s CEO, Michael McCaffrey.
The LLC’s owned by McCaffrey obtained three separate loans from Alameda, with the primary getting used to finance the $12 million April 2021 buy of The Block beneath the LLC MJMCCAFFREY.
A second $15 million mortgage in January of 2022 supplied funding for The Block through an LLC named Lonely Highway. A 3rd mortgage of $16 million, in response to the report, “went to an LLC named Purple Sea that McCaffrey used, partially, to purchase [a] Bahamas condo.”
The Block’s Chief Income Officer Bobby Moran will take over as CEO, and the corporate will search to restructure as a way to purchase out McCaffrey’s stake within the firm.
The report described how the “information got here as a shock to The Block’s editorial management, who sources say are furious about McCaffrey’s failure to reveal such an in depth and demanding monetary partnership with Bankman-Fried and Alameda…”
Larry Cermak, The Block’s VP of analysis, acknowledged that “Mike by no means requested me or anybody in analysis to cowl FTX or SBF in any specific manner. Or anybody else, for that matter. We had full discretion to do our jobs.”
Frank Chaparro, The Block’s information director, launched this statement on twitter:
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