The Block CEO resigns over failure to disclose $43 million loan from Alameda Research

ChainCatcher news, according to an announcement from The Block, its CEO Michael McCaffrey has resigned for failing to disclose a series of loans obtained from Alameda Research. The Block's Chief Revenue Officer Bobby Moran will take over as CEO, effective immediately.

Moran stated in a statement that Michael McCaffrey was the only person in the company who knew about the loans. McCaffrey will also resign from the company's board but remains a major shareholder of The Block. McCaffrey received a total of three loans amounting to $43 million. The first loan was for $12 million, used to acquire The Block in 2021. The second loan of $15 million, obtained in January of this year, was to help maintain daily operations, while a previous loan of $16 million was used to purchase personal property in the Bahamas.

Michael McCaffrey tweeted that The Block was in trouble in early 2021, and he was then evaluating whether to sell, merge, or restructure. In February 2021, when he obtained a $12 million loan from SBF for his holding company, the only option was to restructure. He stated that he did not disclose this loan to anyone, nor did he disclose the subsequent $15 million loan, and others at The Block were unaware of the matter because he did not want the related loans to affect The Block's objectivity in reporting on SBF and his companies. He also stated that he "never tried to influence the reporting on FTX, Alameda, or SBF." (The Block)