Sam Bankman-Fried, the former crypto czar, keeps getting involved in new disputes. Just days after it was revealed that the federal government is looking into him for market manipulation, the most recent one alleges that he secretly supported a news organisation covering the cryptocurrency business. Axios was the first to discover that Bankman-Fried secretly sent money to Michael McCaffrey, CEO of The Block, using FTX’s sister business Alameda Research.
It’s interesting to note that not all of that money went toward supporting The Block’s ongoing journalism activities. According to reports, McCaffrey utilized a portion of a $16 million loan from Bankman-Fried to help pay for a Bahamas apartment. It is the same location where Bankman-crypto Fried’s empire was based and where he resided in a lavish mansion with other FTX and Alameda showrunners. According to reports, McCaffrey contacted the fallen crypto king last year to discuss buying out The Block’s investors and making the news organization entirely employee-owned.
Bankman-Fried complied by sending three distinct consignments of loans totaling $43 million via Alameda. The Block’s entire crew may have been kept in the dark about the transactions, and when they did learn about it, they didn’t seem too thrilled about it because the transactions put the credibility of the company in danger. On the other hand, FTX and its sister firms are currently under investigation for missing billions of dollars worth of assets. It’s also plausible that the previously reported unlawful transactions included the loan to McCaffery.
Another casualty of Bankman-Fried
According to a statement on The Block’s website, McCaffrey was the only one who knew about the funds, and he has since resigned as CEO “after failing to declare a series of loans” from Bankman-Fried. Bobby Moran, the company’s chief revenue officer, will become the new CEO. In a statement, Moran reiterated that there is no proof that McCaffery attempted to sway The Block’s editorial stance, particularly when it comes to reporting on Bankman-Fried or his businesses.
McCaffery has left his position as The Block’s CEO in addition to his position on the board of directors, despite still owning a majority of the company. In response to the findings, Moran wrote an article on Medium, pointing out that McCaffery just told him about the Alameda funds right before Thanksgiving. Moran adds that McCaffery will no longer be involved in “day-to-day managerial or operational responsibilities at The Block” due to his “severe lack of judgement” in secretly obtaining a loan from Bankman-Fried.
Bankman-Fried has offered to speak before Congress in a hearing on December 13 in the interim, although he cautions that he might not be able to address all the pertinent queries. After blowing through a personal fortune of over $22 billion, he is now helping with FTX’s bankruptcy proceedings. Bankman-Fried recently stated in an interview that he had almost nothing left of his once-impressive fortune. He is currently on a media contact binge.
