The Blocks SEO $43M Loan From Alameda Research

T

he CEO Michael McCaffrey of a crypto news outlet has stepped down following allegations that he failed to reveal over $43 million in loans from Alameda Research and the controversial Sam Bankman-Fried, founder of FTX. It is believed that some of these funds were used to purchase an apartment for himself in the Bahamas.

Last week, after Axios first published news of the loans, Michael McCaffrey resigned from his role as CEO of The Block. The company quickly confirmed the report in an official statement.

The Block was granted three loans from Alameda Research, the hedge fund led by Bankman-Fried that has been held responsible for FTX's downfall.

Last year, The Block was granted a loan of $12 million, and McCaffrey used the funds to purchase other investors' stakes in the company. Subsequently, all employees gained full ownership of The Block and McCaffrey took over as CEO with his majority holding. According to Axios, this transpired soon after acquiring the loan.

In January, The Block was awarded a loan worth $15 million to finance their day-to-day operations and sustain the struggling website according to Axios.

Last spring, an additional $16 million loan was issued to McCaffrey which he subsequently used for purchasing real estate in the Bahamas according to a report by Axios.

Other than Mike, nobody at The Block was aware of the financial agreement; said Bobby Moran, who will become the CEO in due course and is currently serving as The Block's Chief Revenue Officer.

Jonathan

An editor at Coincrop

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Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.