Singapore-Based Fund Acquires Controlling Interest in Media Company Formerly Supported by Bankman-Fried Loan

14 Nov, 2023

Singapore-Based Fund Acquires Controlling Interest in Media Company Formerly Supported by Bankman-Fried Loan

In a significant shift within the cryptocurrency space, Foresight Ventures, an investor based in Singapore, has acquired a majority stake in The Block, a prominent crypto news publication. This strategic move aligns with The Block's ongoing efforts to distance itself from its former CEO, Michael McCaffrey. McCaffrey had previously received undisclosed loans from Alameda Research, the trading firm linked to FTX co-founder Sam Bankman-Fried.

Representatives from both Foresight Ventures and The Block confirmed the majority stake acquisition in a deal with Mr. McCaffrey, the former executive with ties to FTX. Foresight Ventures, a digital asset-focused venture capital firm based in Singapore, has deployed approximately US$70 million in 2023 across various projects, both within and outside the crypto space, totaling around US$200 million since its inception.

While the specific details of the deal remain undisclosed, insiders suggest it surpasses the US$50 million mark. Notably, Mr. McCaffrey had previously accepted three clandestine loans totaling US$43 million from Alameda Research in 2021, a revelation that came to light after FTX's collapse. McCaffrey utilized part of these funds to buy out other investors in The Block and provide working capital to the crypto news site.

The acquisition sees Mr. Forest Bai, CEO of Foresight Ventures, taking on the role of Chairman of The Block's board. Furthermore, it has been confirmed by The Block's current CEO, Larry Cermak, that General Partner Tony Cheng will be appointed to the board. The move signifies a transformative chapter for The Block, signaling a strategic shift in ownership and leadership amid the evolving landscape of crypto news media.