It’s called corruption! The Block announces that Michael McCaffrey has resigned as CEO after failing to disclose $27 million in loans from FTX subsidiary Alameda Research. The crypto publication In a Medium post, The Block’s Bobby Moran wrote that McCaffrey was the only person at the organization who had “knowledge of the funding” of Alameda, the crypto hedge fund at the center of the FTX bankruptcy.
Besides Mike, no one at The Block allegedly knew about this financial arrangement. Moran, The Block’s chief revenue officer, has assumed the position of CEO, effective immediately, according to a company report.
Axios reported that $16 million of the Alameda funding was used in part to finance the purchase of an apartment in the Bahamas for Michael McCaffrey.
Previously, Bankman-Fried had been considered a crypto darling by some. He courted lawmakers to give digital assets legitimacy. Still, a run on his company and allegations of gross mismanagement forced FTX into bankruptcy, making waves in many parts of the financial world.