The Block, which covers crypto news, has been secretly funded for over a year with money funneled to The Block’s CEO from the disgraced Sam Bankman-Fried’s cryptocurrency trading firm, reports Sara Fischer of Axios.
Fischer reports, “The payments, which employees of The Block were previously unaware of, could undermine the news company’s credibility and cast doubt on its coverage of Bankman-Fried, the now-bankrupt FTX and Alameda Research, Bankman-Fried’s trading firm.
“One $16 million batch of funding from Alameda was used in part to finance the purchase of an apartment in the Bahamas for Block CEO Michael McCaffrey, according to sources familiar with the transactions.
“Driving the news: McCaffrey has resigned as CEO and is leaving the company, The Block’s chief revenue officer Bobby Moran confirmed to Axios on Friday. McCaffrey is also stepping down from its board.”
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