Important fast food
- Today it was revealed that Block CEO Michael McCaffrey had secretly borrowed $43 million from Sam Bankman-Fried.
- At least $27 million was used to fund the crypto news company.
- McCaffrey resigned.
Sam Bankman-Fried has provided The Block with at least $27 million in financing over the past year and a half. It appears that no one at the company knew of the deal except for CEO Michael McCaffrey.
SBF funded the block
The FTX saga takes unexpected turns all the time.
according to Report from AxiosCrypto news company The Block has benefited from three multi-million dollar loans from former FTX CEO Sam Bankman-Fried over the past year and a half. The loans were made directly to Michael McCaffrey, CEO of The Block, who does not appear to have disclosed them to any of the other members of the company.
The report shows McCaffrey took out a first loan of $12 million in April 2021, a second loan of $15 million in January 2022, and a third loan of $16 million sometime in the spring of 2022. The first two loans were reportedly used to restructure the company And support the company. its general budget. Allegedly, at least part of the third loan was sent to McAfee to purchase property in the Bahamas. McCaffrey himself advertiser that the first two loans were used to “strengthen the company’s position” in a Twitter thread. He did not confirm the existence of a third loan.
McCaffrey announced his resignation as the company’s CEO and sole director shortly after the publication of the Axios report; He was replaced by former Revenue Director Bobby Moran. “Nobody at The Block had any knowledge of this financial arrangement except for Mike,” claimed Moran in a public statement. Moran noted that McCaffrey did not disclose the loans to him until shortly before November 24. The other members of the company were briefed on the situation this afternoon during a comprehensive meeting.
“If I had known about this, I would not have summoned him and objected to him [McCaffrey’s] measures, but called for an immediate change in leadership. And aside from the collapse of FTX, there is no excuse for his deception and disregard for the 160 people who work on The Block.” He said Cluster Editor Frank Chaparro. other members of the company He expressed Similar feelings.
The terms of the deals between McCaffrey and Bankman Fried remain unclear. “We saw no evidence that Mike ever attempted to improperly influence the newsroom or research teams, particularly in their coverage of SBF Research, FTX, and Alameda Research,” Moran said in his statement.
The Block recently published a two-hour interview between Chaparro and Bankman-Fried. Chabarro has been applauded by the cryptocurrency community for his firm and unwavering stance towards the disgraced exchange founder.
Disclaimer: At the time of writing, the author of this piece owns BTC, ETH, and many other crypto assets.