The Block Chief Executive Officer Michael McCaffrey resigned after failing to disclose a series of loans from disgraced former FTX head Sam Bankman-Fried’s Alameda Research. He was the only person with knowledge of the funding at the company.
Bobby Moran, The Block’s chief revenue officer, will step into the role of CEO, effective immediately, according to a company statement.
“No one at The Block had any knowledge of this financial arrangement besides Mike,” Moran said in a statement. “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.”
McCaffrey received three loans in total, the first of which was in the amount of $12 million and was used in 2021 to buy out other investors in the crypto news, data and research provider. He took over day-to-day operations as the CEO at that time. A second $15 million loan in January was used to help fund day-to-day operations, while another $16 million earlier this year was used to purchase personal real estate in the Bahamas.
The resignation is the latest in a string of industry casualties related to the collapse of Bankman-Fried’s crypto empire.
In addition to stepping down as CEO, McCaffrey will step down from the company’s board, which is set to expand to three people. The company is currently working to bring on two members to join Moran on the expanded group.
McCaffrey remains the company’s majority shareholder.