Michael McCaffrey stepped down as CEO of The Block last week after news of the loans was first reported by Axios. The Block issued a statement confirming the report.
The Block received three loans from Alameda Research, the hedge fund founded by Bankman-Fried that has been blamed for FTX’s implosion. The first loan, which was for $12 million, was extended to The Block last year.
McCaffrey used the money to buy out other investors and make the company entirely owned by its employees. Soon afterward, McCaffrey, who held a majority stake, took over as CEO, according to Axios.AFP via Getty Images In January, The Block received another loan — this one for $15 million, which was used to fund the cash-strapped site’s day-to-day operations, Axios reported.The third loan for $16 million, was issued in the spring and was used by McCaffrey to buy himself real estate in the Bahamas, according to Axios. No one at The Block had any knowledge of this financial arrangement besides Mike,” Bobby Moran, The Block’s chief revenue officer who will step into the CEO role, said in a statement. Last month, FTX filed for Chapter 11 bankruptcy after the company used billions of dollars worth of customer funds to cover losses incurred by Alameda Research. FTX also spent $300 million to buy real estate in the Bahamas. Journalists at The Block, which was founded in 2018, were stunned when they were informed of the loans.“Everyone has worked incredibly hard over the years — since before I joined and since I’ve been here — to be fair, accurate and independent in their coverage and thought this would call that into question.” Michael McCaffrey stepped down as CEO of the crypto news site The Block after it was learned he bought personal real estate in the Bahamas with loans that he received from Sam Bankman-Fried’s Alameda Research.The collapse of FTX and the role of Bankman-Fried and others has drawn the scrutiny of federal prosecutors and regulators.
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