The Block, a major cryptocurrency media company, announced that it has sold about 80% of its shares to Singapore-based venture capital firm Foresight Ventures.
The Block shares acquired by Foresight Ventures are valued at $60 million, or about 9.1 billion yen in Japanese yen.
Mike McCaffrey, the former CEO of The Block, resigned in December last year to take responsibility for concealing millions of dollars in loans from Alameda Research, an affiliate of the collapsed cryptocurrency exchange FTX. However, McCaffrey remains a major shareholder in The Block.
In the case that was considered part of the FTX scandal, it was discovered that McCaffrey had diverted borrowed funds not only for real estate investments in the Bahamas, but also for buying out non-employee shareholders.
As a result of The Block's recent sale of shares to Foresight Ventures, The Block's CEO Larry Cermak will continue in his role, but Foresight Ventures will continue to operate as an independent company.
In addition, Foresight CEO Forest Bye will become chairman of The Block, meaning that two of The Block's four board members will be CEOs of Foresight Ventures.
The proceeds from the sale of shares will likely be used to buy back shares held by McCaffrey.
This will weaken McCaffrey's influence over The Block, and it is expected that the company will operate in a healthy media environment.
Reference:AXIOS
Image: Shutterstock
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