Today, Mike McCaffrey is stepping down as CEO of The Block, and I am stepping into that role immediately.
Just before Thanksgiving, Mike told me that in early 2021 he was evaluating ways to merge, sell or restructure The Block. Mike decided to restructure The Block by obtaining financing in the form of loans from Sam Bankman-Fried to LLCs that Mike owns and controls. Those loans, amounting to $27M, were made by Alameda Research and the funds were used to effect the restructuring and provide working capital directly to The Block. As many of you know, the restructuring was announced in April of 2021.
This news came as both a shock and disappointment to The Block leadership team. Mike’s decision to take out a loan from SBF and not disclose that information demonstrates a serious lack of judgment. It undermines The Block’s reputation and credibility, especially that of our reporters and researchers, as well as our efforts at industry-leading transparency.
As a result of Mike’s actions, we have asked him to step down. Mike understands our position, and he agrees with this course of action. Effective today, he will have no day-to-day management or operational responsibilities at The Block.
No one at The Block had any knowledge of this financial arrangement besides Mike. 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.
As this news becomes public, our work will be held up to the most rigorous scrutiny. 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. I have faith that The Block can and will get through this period in our company’s history because of the dedication, talent and integrity of our teammates.
Bobby Moran
CEO, The Block
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