- The Block’s former head Michael McCaffrey, discreetly borrowed funds from Alameda Research on three different occasions.
- The revelation of loans led to McCaffrey being asked to step down, as The Block leadership team denied any prior knowledge of the same.
- Sam Bankman Fried, on the other hand, agreed to depone before the US House Committee on Financial Services.
Sam Bankman Fried’s FTX debacle does not seem to be coming to an end, with more and more companies falling into the pit. Apart from the 130 firms that filed for bankruptcy, FTX and its sister company Alameda Research’s ties are affecting institutions that are not even at the core of the crypto space.
The Block in a bind
As per early reports, The Block seemed to have attained a significant amount of loans from FTX and Alameda Research. This was later confirmed by the crypto publishing news site as its new Chief Executive Officer, Bobby Moran, revealed no prior knowledge by any of The Block’s management team.
As stated by Moran,
“Mike’s decision to take out a loan from SBF and not disclose that information demonstrates a serious lack of judgment... 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.”
According to the data revealed by The Block, the first loan was taken by McCaffrey in 2021. This $12 million loan was used to buy out other investors in the crypto space.
The second loan was received in January this year to fund The Block’s operations, followed by another $16 million. The third loan used by McCaffrey was for personal use, to purchase real estate in the Bahamas.
While no charges or action against McCaffrey have been revealed yet, Moran continued to defend the company saying,
“We are confident that any objective analysis will show that our team’s work has been and remains fair, independent, and accurate. The Block’s mission remains more vital than ever: to be the leading source for objective, impactful, and timely information covering the world of digital assets,”
Sam Bankman Fried agrees to testify
Sam Bankman Fried, for the first time since FTX’s collapse, publicly announced its cooperation with the US authorities. In reply to the US House Committee on Financial Services, the former FTX CEO said that he is willing to testify on December 13, still maintaining his statement of “not having sufficient data”.
Calling himself a failure in being a model CEO, Bankman-Fried highlighted the topics he would testify about, including FTX’s American arm’s solvency,
2) I will try to be helpful during the hearing, and to shed what light I can on:
— SBF (@SBF_FTX) December 9, 2022
--FTX US's solvency and American customers
--Pathways that could return value to users internationally
--What I think led to the crash
--My own failings
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.