Crypto news outlet The Block’s CEO Michael McCaffrey has resigned after failing to disclose a series of loans from Alameda Research – a company linked to former FTX head Sam Bankman-Fried (SBF).
McCaffrey took over as CEO in 2021 after using a $12 million loan from Alameda to buy out other investors in the company. He received two more loans from Alameda, one for $15 million in January, and another for $16 million earlier this year. McCaffrey will also be stepping down from The Block’s board, which is set to expand to three members.
Founder of The Block, Mike Dudas, expressed distress on Twitter in anticipation of the news of a “business betrayal” that the community was “all going to learn about” shortly.
i just learned about the worst personal betrayal of my entire life
— Mike Dudas (⛳️,?) (@mdudas) December 9, 2022
Bobby Moran, the company’s chief revenue officer, will step in as CEO with immediate effect.
Moran said in a statement that “no one at The Block had any knowledge of this financial arrangement besides Mike.”
“From our own experience, we have seen no evidence that Mike ever sought to improperly influence the newsroom or research teams, particularly in their coverage of SBF, FTX and Alameda Research.”
In the statement, Moran described the news as both “a shock and disappointment to The Block leadership team.”
1/ I have difficult news to share. I’m stepping down as The Block’s CEO. While it’s personally painful, it’s the right thing for The Block and the team.
— Mike McCaffrey (@McCaffrMike) December 9, 2022
Moran acknowledged the scrutiny The Block will be under, as the news of Alameda funding becomes public, and gave a closing statement of reassurance on The Block’s integrity:
“The Block’s mission remains more vital than ever: to be the leading source for objective, impactful, and timely information covering the world of digital assets. I have faith that The Block can and will get through this period in our company’s history because of the dedication, talent and integrity of our teammates.”
More details to follow