Did the SBF Pay a Bribe? The Manager Has Resigned!
Sources who spoke to Axios claimed that the former CEO of the bankrupt crypto currency exchange FTX secretly financed the popular news site The Block by transferring money to the company’s CEO!
$16 Million in Funding
According to data obtained by Axios from sources, The Block, a media company that claims to independently publish cryptocurrency news, has been secretly funded for over a year with money transferred from the FTX exchange, where Sam Bankman-Fried serves as CEO, to the CEO of The Block. According to the allegations, the $ 16 million fund received from Alameda was used to finance the purchase of an apartment in the Bahamas for The CEO of The Block, Michael McCaffrey.
Bobby Moran, The Block’s chief revenue officer, confirmed to Axios on Friday that McCaffrey has stepped down as CEO and will be leaving the company. McCaffrey is also leaving the board. Bobby Moran will take over McCaffrey’s role as CEO and will also attempt to restructure The Block to buy out McCaffrey’s stake in the company, according to reports.
McCaffrey is the company’s sole board member since April 2021. In addition, Bobby Moran has stated that he will join The Block’s board of directors. In April 2021, McCaffrey led the acquisition of The Block’s investors, ensuring that the company is 100% owned by its employees, and McCaffrey owns a majority stake. The unprofitable company had previously raised over $4 million through convertible bonds from venture firms such as Greycroft, Pantera, BlockTower Capital and Bloomberg Beta, Kia Kokalitcheva of Axios reported.
According to data obtained by Axios, McCaffrey began negotiations with Sam Bankman-Fried about a loan to finance the purchase in early February of last year. The LLCs controlled by McCaffrey received a total of three loans from Alameda, a portion of which can be converted into equity in the company.
McCaffrey used the initial loan of $12 million to finance the acquisition of Block through an LLC called MJMCAFFREY LLC in April 2021. The latter provided capital to the Block in January 2022 for $ 15 million through an LLC called Lonely Road. The third, for $ 16 million in the spring of 2022, went to an LLC called Red Sea, which McCaffrey used in part to purchase the apartment in the Bahamas. Bobby Moran confirmed that these transactions have taken place. Bobby Moran gave the following statements on the subject of explanations:
My first reaction was anger, frustration and concern for all my colleagues. Over the years everyone has worked incredibly hard to be fair, accurate and independent in their news. However, this is very frustrating.
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