- By April 2021, The Block had supposedly severed ties with outside investors.
- The company expects to bring in roughly $20 million in income this year.
The CEO of cryptocurrency news site The Block, Michael McCaffrey, resigned when it was revealed that the business had received an undisclosed investment from former FTX founder Sam Bankman-Fried, according to a report by Axios. McCaffrey, who became CEO in April of 2020, has also resigned from the board of the scandal-plagued crypto media platform (he was the only member).
By April 2021, The Block had supposedly severed ties with outside investors after having bought out all of its non-employee stockholders. The site has always needed funding from venture capitalists in order to function.
Chief Revenue Officer Named Interim CEO
Axios claims, however, that one of his LLCs discreetly borrowed $12 million from Bankman-Fried to pay for the buyout. Early in 2022, the founder of FTX lent The Block $15 million. McCaffrey used a portion of the $16 million loan he acquired from Bankman-Fried in the spring to purchase a condo in the Bahamas.
According to Axios’s sources, the company expects to bring in roughly $20 million in income this year via a combination of advertising and paid memberships.
In this case, it is claimed that no one within the corporation was aware of the aforementioned financial dealings. Bobby Moran, the chief revenue officer, is now the CEO of the media company. He plans on reorganizing the business in order to buy out the previous leader’s share. Moran insists the media organization will keep going despite signs of financial trouble. McCaffrey got his start in the financial industry at Goldman Sachs and Citi before he joined The Block.
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