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Block CEO Michael McCaffrey has resigned after failing to disclose a series of loans from disgraced former FTX chief Sam Bankman-Frieds Alameda Research. He was the only person aware of the company’s financing.
Bobby Moran, chief revenue officer of The Blocks, will assume the role of CEO, effective immediately, according to a statement from the company.
No one at The Block was aware of this financial arrangement other than Mike, Moran said in a statement. From our own experience, we have seen no evidence that Mike ever sought to inappropriately influence the newsroom or research teams, particularly in their coverage of SBF, FTX, and Alameda Research.
McCaffrey received three loans in total, the first of which was for $12 million and was used in 2021 to buy out other investors in the crypto news, data and research provider. He took over day-to-day operations as CEO during this time. A second loan of $15 million in January was used to help fund day-to-day operations, while another $16 million earlier this year was used to purchase personal real estate in the Bahamas.
The resignation is the latest in a string of industry casualties linked to the collapse of the Bankman-Frieds crypto empire.
Along with stepping down as CEO, McCaffrey will step down from the company’s board of directors, which is expected to grow to three people. The company is currently working to recruit two members to join Moran in the expanded group.
McCaffrey remains the majority shareholder of the company.
(Updates with a link to Moran’s statement in the third paragraph.)
2022 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.
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