Crypto news site “The Block“ came under fire this week as its CEO, Michael McCaffrey, resigned amidst revelations that he failed to disclose loans from FTX-affiliated Alameda Research totaling some $43 million to fund, ‘restructure the company’ and buy property in the Bahamas.
The new CEO of The Block, Bobby Moran, has come out saying: “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.”
It’s a very hard pill to swallow as the sheer amount of glowing FTX articles by The Block look tainted against this backdrop, especially for an outlet that generates most of its revenue through advertising and research.
Journalistic integrity involves a commitment to accuracy, fairness, objectivity, and independence. It means accurately reporting the facts, being transparent about biases or conflicts of interest, and presenting a balanced and unbiased view of events.
This helps to ensure that the news media serves as a trusted source of information and can help promote transparency and accountability and be seen as the cornerstone of democracy.
The situation is Almost Comical
In an almost comical event, The Block’s founder, Mike Dudas, used an incorrect Twitter account to defend himself in this debacle. It’s hard to take him seriously when it was revealed that he told TechCrunch he is “exploring what, if any, avenues exist to get The Block into trustworthy ownership.”?
Earlier this week, NFT Today Magazine broke that Sam Bankman-Fried, the founder of the defunct cryptocurrency exchange FTX, was arrested by Bahamian authorities after the United States Attorney for the Southern District of New York shared a sealed indictment with the Bahamian government. This will pave the way for his extradition and trial in the United States.
One can’t help thinking that there will be more skeletons in this closet and that The Block is only one domino in a series of events about to fall.
Rocco Strydom is the Founder of SGM Holdings – finance, energy and media and is the host of the
SGM podcast based in South Africa