MEXCSBF’s Alameda Research Secretly Financed This Crypto News Website
The Block, a media organization that covers cryptocurrency news independently, has been covertly financed for more than a year with money that has been channeled to The Block’s CEO from the infamous FTX founder Sam Bankman-Fried. The payouts, which The Block staff members were previously unaware of, might compromise the crypto news organization’s reputation and raise questions about its coverage of SBF, the now-defunct FTX, and its trading firm, Alameda Research.
SBF Funds $43Mn To CEO
The Block claims that from 2021 to this year, Michael McCaffrey, the ex-CEO of the crypto news website, obtained three loans totaling $43 million from SBF. The first loan was made in 2021 for $12 million to buy out other investors in the media organization, at which time McCaffrey assumed the role of CEO.
Read More: SBF To Be Arrested During House Testimony Visit To The U.S.?
The second was for $15 million in January to fund day-to-day expenses; while the third was for $16 million earlier this year for McCaffrey to buy private real estate in the Bahamas.
The Block’s CEO Resigns
However, in light of this exposé, The Block’s Chief Executive Officer, Michael McCaffrey, has resigned from the post. Bobby Moran will now be heading the news media website with immediate effect. In his official statement, he says:
No one at The Block had any knowledge of this financial arrangement besides Mike. From our own experience, we have seen no evidence that Mike ever sought to improperly influence the newsroom or research teams
According to The Block, McCaffrey will not only leave his position as CEO but also as the company’s board; which will now comprise of three members. The firm is currently looking to add two more people to the extended group to join Moran.
Read More: Kevin O’Leary Claims He Can’t Call SBF Guilty Unless He’s Tried
The Block’s editorial leadership was taken aback by the news, and according to insiders, they are furious that McCaffrey failed to reveal such a significant financial arrangement with Bankman-Fried and Alameda, especially given that they are still covering the effects of FTX’s bankruptcy.
About The Block
The Block was established in 2018, and McCaffrey took the helm as CEO in 2020. The Block became 100% employee-owned with McCaffrey owning a majority stake in April 2021 after he arranged a buyout of the company’s investors.
The company, which is not profitable, previously raised nearly $4 million through convertible notes from venture capital firms like Greycroft, Pantera, BlockTower Capital, and Bloomberg Beta.
- Coinbase Prime Taps Figment to Boost Institutional Staking on Solana, Cardano, and Sui
- Here’s Why Zcash (ZEC) Price Tanked 10% Today Following 500% Rally
- Litecoin Price Jumps, What’s Behind the Sudden Rally? (28 oct)
- Metaplanet Stock Surges 10% on Share Repurchase, Capital Allocation Policy
- AI Meets Smart Routing: Screx Sets a new efficiency Benchmark in DeFi
- XRP Price Chart Patterns Hint at 2017-Style Breakout as Evernorth Acquires $1B XRP Ahead of Nasdaq Debut
- Cardano Price Eyes 80% Rally as x402 Upgrade Sparks Hope for AI Payment Expansion
- Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms
- Dogecoin Price Prediction As Whales Scoop Over $300 Million- Is A Bull Run Ahead?
- Pi Coin Price Jumps 24% as 10M Tokens Exit Exchanges – Can Bulls Sustain the Momentum?
- Bitcoin Price Poised to Break $125k? If President Trump Announces Deal with China on October 30th
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
