In a news shared by Axios, the leading cryptocurrency news site The Block important allegations were made against him. According to the report, former FTX CEO Sam Bankman-Fried financed The Block site. SBF’s transfer of funds caused The Block CEO Michael McCaffrey to resign.
It turned out that The Block, which proceeds with the motto of impartial reporting, has a relationship with Alameda Research. According to the details in the news, the company provided $ 40 million in finance to the news site.
The Block, FTX and Alameda Research Relationship
The collapse of the FTX exchange, which is seen as one of the crypto giants, caused a great shock in the industry. The story that started with the bankruptcy of a company soon changed with the emergence of potential ‘crimes’.
FTX The bankruptcy of such a giant name created a shock and spillover effect in the sector and caused great damage. Indeed, things are showing that it goes beyond this kind of spread. Cryptocurrency The Block, one of the leading names in the press, was ‘secretly’ financed by Sam Bankman-Fried. CEO Michael McCaffrey, who did not share the said financing transparently, resigned after the events.
The news states that Bankman-Fried’s trading company, Alameda Research, has paid as much as $16 million in a funding. Also speaking to Axios, sources claimed that some of the funds were used to buy McCaffrey an apartment in the Bahamas.
Michael McCaffrey resigned and Bobby Moran took office as the new president. McCaffrey took over as CEO of the company in 2020 after all investors bought it.
The report states that McCaffery negotiated a potential loan with Bankman-Fried in February of last year to finance the acquisition. LLCs controlled by McCaffrey revealed that it received three loans from Alameda Research.
The initial loan was reportedly $12 million and was used to finance The Block’s acquisition. Later, the latter was worth $15 million and “provided capital” for the media company. The third was worth $16 million and was reportedly used to buy the Bahamas flat.
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