Report Shows Crypto News Publication The Block Was Secretly Funded by Bankman-Fried"s Alameda
On Dec. 9, 2022, Axios reporter Sara Fischer reported on the CEO of the crypto media The Block after it was discovered that the chief executive was secretly funded by Alameda Research, the now-defunct trading firm co-founded by Sam Bankman-Fried. According to the report, sources say The Block executive Michael McCaffrey received $16 million in one payment and used the funds to purchase an apartment in the Bahamas. The Block CEO Received 3 Payments of $43 Million From Alameda Research, One Payment Used to Purchase an Apartment in the Bahamas
The Twitter community has been discussing a new revelation that is tied to the disgraced FTX co-founder Sam Bankman-Fried (SBF) and his quantitive trading firm Alameda Research. Reportedly, The Block was funded by Alameda for more than a year, and “one $16 million batch of funding” went toward an apartment in the Bahamas.
The news was reported on by the Axios reporter Sara Fischer on Dec. 9, 2022, and the reporter noted that The Block employees got wind of the situation just before the exclusive report was published. The Block chief executive officer Michael McCaffrey.
Axios noted that The Block’s chief revenue officer, Bobby Moran, will take over the CEO role as Fischer said “McCaffrey has resigned as CEO and is leaving the company.” Moran plans to restructure The Block, and attempt to “buy out McCaffrey’s stake in the company.” The news was confirmed by a number of The Block’s employees on Friday via Twitter.
“I’m absolutely gutted by this news, which was briefed to the company this afternoon,” The Block’s Frank Chaparro tweeted. “Underpinning my shock are feelings of utter disgust and betrayal by Mike’s actions, greed, lack of disclosure. He’s literal scum. He kept every single one of us in the dark.”
The former CEO of the media company, Mike Dudas, tweeted that the news was “Horrifying.” “[I am] devastated beyond belief,” Dudas said. “I was given less than an hour’s heads up by the CEO of The Block. If you think you’re shocked, I’m literally lost right now.”
The Block’s VP of research Larry Cermak also tweeted about the situation. “Last few months really can’t get much worse,” Cermak wrote. “Got f***ed by FTX (after naively trusting them like a complete idiot) and now also got f***ed by the CEO. Just like everyone else at The Block, I just found out about this,” the researcher added. The Block Reports on Firm’s CEO, Story Follows Alleged Circle of Coindesk Buyers
The Block also published an article about the story which cites a statement made by Bobby Moran. “No one at The Block had any knowledge of this financial arrangement besides Mike,” Moran explained in a statement.
“From our own experience,” Moran added. “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.” According to The Block’s own data, McCaffrey received three loans which added up to roughly $43 million.
The news concerning The Block’s funding follows the report published by Semafor that explained the crypto news publication Coindesk received takeover solicitations from a number of investors. Interestingly, Coindesk published a report that had been cited by many (including Wikipedia) as one of the fires that lit the FTX bonfire.
The FTX contagion hurt a number of associated businesses and Coindesk’s parent firm Digital Currency Group (DCG) was indirectly exposed to the blowout. Semafor’s Bradley Saacks and Liz Hoffman cited the FTX contagion spread to DCG and quoted DCG’s founder Barry Silbert in the article. In addition, Semafor itself was funded by FTX co-founder SBF, and Tesla’s Elon Musk recently slammed Semafor’s journalistic integrity over the funding from the disgraced crypto CEO. Tags in this story alameda, Alameda Research, Alameda SBF, Alameda The Block, Axios, Bobby Moran, CoinDesk, Crypto Media, DCG, Frank Chaparro, FTX bonfire, FTX collapse, Journalists, Larry Cermak, Media, Mike Dudas, Mike Dudas statement, Sara Fischer, sbf, SBF story, Semafor, statements, The Block Media
What do you think about the news that shows the crypto publication The Block was funded by Alameda for more than a year with $43 million? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Coinbase Entices Users to Switch From USDT to USDC, Crypto Firm Says Recent Events "Put Some Stablecoins to the Test" NEWS | 5 hours ago Massachusetts Senator Forwards Bill Aimed at Forcing Crypto Miners to Report Greenhouse Gas Emissions NEWS | 14 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleEthereum’s Shanghai Hard Fork Could Happen in March 2023, ETH Dev Says Staking Withdrawals Is the ‘Highest Priority’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItArgentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments
The National Securities Commission (CNV), which is the Argentinian securities watchdog, recently launched an innovation hub with the goal of advancing conversations about cryptocurrency and fintech investments. This organization will serve as a link between private entities and the institution, ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher