SAN FRANCISCO:  Sam Bankman-Fried (SBF), the former CEO of the now-defunct cryptocurrency exchange FTX, gave Michael McCaffrey, the CEO of the crypto news website The Block, USD27 million in a series of secret loans to keep it afloat.

Also, McCaffery received a USD 16 million loan from Bankman-Fried, part of which was used to assist him buy property in the Bahamas, where FTX is based, according to Axios.

The Block reported late on Friday that McCaffrey had resigned after "failing to disclose a series of loans from disgraced former FTX chief Sam Bankman-Alameda Fried's Research."

He was the only person at the company who was aware of the funding, it said.

The Block's chief revenue officer, Bobby Moran, will take over as CEO with immediate effect.

Alameda Research provided the loans, totaling USD 27 million, according to a Medium post by Moran. The money was utilised to complete the restructuring and give The Block access to working capital.

The Block leadership team was shocked and disappointed by this revelation. It shows a tremendous lack of judgement on McCaffrey's part to take out a loan from SBF without disclosing that information, according to Moran.

"Due to his behaviour, we have requested that he resign. He won't be responsible for The Block's daily management or operational tasks. SBF, who is accused of defrauding investors of billions of dollars, has stated he is not ready to appear before a US Congress committee on December 13.

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