The Block CEO Michael McCaffrey has announced his resignation after revealing a series of secret loans to Sam Bankman-Fried’s Alameda Research fund.
Accordingly, in the period 2021-2022, McCaffrey had three loans from Alameda Research with a total value of $43 million. The first loan was worth $12 million to buy back shares of The Block, thereby becoming the main shareholder and taking the position of CEO. The second loan is worth $15 million to keep The Block operating, and the third loan is worth $16 million in 2022 to buy real estate in the Bahamas – where FTX is headquartered.
Notably, all the loans were made secretly between Michael McCaffrey and Alameda Research personally, not disclosed to anyone at The Block.
Bobby Moran, the current CFO of The Block, will replace Mr. McCaffrey as CEO. McCaffrey will also step down from The Block’s board but will maintain his majority stake in the firm.
Most of the staff at The Block were surprised by the above revelation. Frank Chapparo, a popular reporter for The Block on the crypto community on Twitter, said he was “shocked and betrayed” by the former CEO.
Immediately, criticisms of The Block having articles biased towards FTX and not favorable to other exchanges rose, including a response from Binance CEO Changpeng Zhao.
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