BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

FTX Fallout and Contagion Stains Crypto News Credibility

by Chiwuike Owunwa
Dec 10, 2022 - 12:00 am
in Blockchain
DeFi Trustless Code is Forcing Crypto CeFi to Pay Back Loans

On the 9th of Dec 2022, Frank Chaparro, the news director for The Block, shared his thoughts on Michael McCaffrey’s collaborations with FTX and Alameda as the CEO of The Block.

1) I'm absolutely gutted by this news, which was briefed to the company this afternoon.

Underpinning my shock are feelings of utter disgust and betrayal by Mike’s actions, greed, lack of disclosure. He's literal scum. He kept every single one of us in the dark. https://t.co/jIZCxtHrfc

— Frank Chaparro (@fintechfrank) December 9, 2022

Frank went on to share his utter disgust and shock at the amount of greed and disclosure driving Michael McCaffrey’s actions. Calling him literal scum.

The block takes its role as the trusted moderator and authoritative voice seriously. Its journalists have built content for those who invest in, work with, make decisions about, or seek to understand the cryptocurrency and digital assets space.

They could only achieve this by delivering objective, impactful, and timely information that users could rely on and trust. Therefore, The Block had to be seen as an independent media outlet, void of any conflicts of interest. That image which The Block’s staff had been building for years was all dashed by the actions of its CEO.

It all started in April 2021, when Michael McCaffrey led a buyout of all Investors, transferring 100% ownership of The Block to its employees, and he had the highest share at the time. Because the company wasn’t profitable then, so it raised $4 million from venture capitalist firms like Pantera, Greycroft, BlockTower Capital, and Bloomberg Beta.

With its revenue coming mostly from Advertisement, it was expected to earn around $20 million this year. But that wasn’t enough for McCaffery, so he reached out to the CEO of FTX and owner of Alameda, Sam Bankman-fried.

He initially collected loans to finance the buyout and did the transactions through his LLCs. these LLCs received a total of 3 separate payments from Alameda. The first was $12 million in April 2021, $15 million in January 2022, and $16 million later in 2022.

What did he use the funds to do?

After financing the buyout, McCaffery buys a house in the Bahamas worth millions of dollars. Then he informed the staff of his actions which led to an uproar. They had just recently been covering the FTX and Alameda situation, and Frank Chaparro was responsible for interviewing SBF.

McCaffery’s ties with Alemeda and FTX made it difficult to appear independent and impartial, as the FTX group has been financing The Block since 2021.

For that reason, Michael McCaffery was asked to resign as CEO to be replaced by Bobby Moran. And The Block would continue to operate as there’s little sign that McCaffery tried to influence Block’s reporting on FTX or Alameda.

Tags: FTX
Chiwuike Owunwa

Chiwuike Owunwa

Chiwuike is a frontend programmer and writer with 3 years experience in the Web3. He's meticulous researcher, enthusiastic about Blockchain and the future of crypto, DeFi, and the Metaverse.

Related Posts

Arthur Hayes speaking about Bitcoin as Japan’s new Prime Minister announces economic stimulus measures

Arthur Hayes Predicts $1M Bitcoin as Japan’s New PM Unveils Economic Stimulus

October 22, 2025

Arthur Hayes predicts Bitcoin could hit $1M as Japan’s new PM Sanae Takaichi launches economic stimulus, signaling potential...

blockchain

Bolivia’s President-Elect Rodrigo Paz Turns to Blockchain to Fight Corruption

October 20, 2025

Bolivia’s new president Rodrigo Paz plans to use blockchain in public procurement and crypto asset declarations as part...

Metaplanet and Bitcoin Magazine logos, symbolizing their new partnership to expand operations in Japan.

Japan Moves Toward Allowing Banks to Buy Bitcoin Under New Regulatory Framework

October 19, 2025

Japan’s regulators are reviewing changes that could let banks buy and hold Bitcoin, signaling a major shift in...

24H HOLD token price chart showing 35% surge despite market pullback

Crypto markets surge as Trump confirms October 31 summit with Xi Jinping

October 19, 2025

Crypto markets rebound after Trump confirms October 31 summit with Xi Jinping, easing US-China tensions and sparking optimism...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service