In order to carry out a restructuring of the crypto media The Block, its CEO Michael McCaffrey would have sought financing from Sam Bankman-Fried without informing his collaborators. The person concerned was thus forced to resign with immediate effect.
Sam Bankman-Fried had bankrolled the CEO of The Block
This is bad publicity, which our colleagues from the specialist cryptocurrency media The Block would certainly have done without. Indeed, it turns out that its CEO Michael McCaffrey had been funded by Sam Bankman-Fried (SBF) via Alameda Research, without the knowledge of all of its collaborators.
Michael McCaffrey, since forced to resign with immediate effectreportedly revealed his information to his successor Bobby Moran shortly before November 24.
CEO Transitionhttps://t.co/bcEjRqtF2Q
— The Block (@TheBlock__) December 9, 2022
This case dates back to 2021, when a restructuring plan was launched at The Block, in order to make the media independent of its initial investors. In total, this would involve three loans. A first loan of 12 million dollars would therefore have been used to buy back the shares of these investors.
Later, in January of that year, a second loan of $15 million was reportedly used to fund The Block’s day-to-day operations. Finally, a third loan of $16 million would have allowed the purchase of real estate in the Bahamas.
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Freedom of the press challenged
Faced with these revelations, The Block affirms that only Michael McCaffrey would have been aware of these operations, and that he would have used other companies he owned to receive funding from Alameda Research. The media condemned these actions as follows:
“This news has been both a shock and a disappointment to The Block’s management team. Mike’s decision to take out a loan from SBF and not disclose this information demonstrates a serious lack of judgment. It undermines The Block’s reputation and credibility, especially that of our journalists. […]. »
Furthermore, The Block claims that to its knowledge, its former CEO would not have sought to influence the editorial line in favor of Sam Bankman-Fried.
Binance CEO Changpeng Zhao (CZ) didn’t feel that way, however, as he jumped at the chance to say that this would explain why The Block allegedly got tough on his business for no apparent reason :
I have always wondered if we ever did something wrong to piss off The Block, as they were harsh on us for no apparent reason. It all makes sense now.
— CZ 🔶 Binance (@cz_binance) December 9, 2022
At a time when transparency is essential, we are discovering day after day the extent of the offshoots of the defunct FTX empireas well as all the questionable actions that have been committed.
👉 Also in the news – NFTs hosted at FTX are corrupted and invisible to their holders
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Source: The Block
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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