The Block’s chief executive Michael Mackefrey resigns after it emerged that the news outlet had undisclosed loans from Alameda Research, the Sam Bankman-Fried–affiliated entity.
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Media reports said that the former CEO was the only employee of the company aware of the financing. His position was taken by The Block’s chief revenue officer Bobby Moran.
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“We did not find any evidence that Mike ever sought to improperly influence the news or research teams, especially in their coverage of Sam Bankman-Fried, FTX and Alameda Research”, wrote he said.
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According to Moran, Mackefrey himself told him about receiving loans totaling $27 million from Alameda Research to finance the publication’s restructuring, announced in April 2021.
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“The news was a shock and disappointment to The Block’s leadership. […] It undermines the reputation and trust in The Block, especially among our journalists and researchers, as well as our efforts to raise transparency in the industry. As a result of Mike’s actions we asked him to resign,” the new CEO added.
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According to the publication, Mackefrey received three loans:
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- $12 million — used in 2021 to repurchase investments in the company;
- $15 million — in January 2021 directed to fund day-to-day operations;
- $16 million — used in early 2022 to purchase personal real estate in the Bahamas.
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The former CEO will also leave The Block’s board of directors, which will be expanded to three members. The company is working to recruit two more people who will join Moran.
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Mackefrey remains a majority shareholder of The Block.
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“We are confident that any objective analysis will show that the work of our team has been and remains fair, independent and accurate,” Moran added.
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In November, FTX Group, which includes Alameda Research, filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. Sam Bankman-Fried stepped down as CEO.
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