- Foresight Ventures acquires majority stake in The Block.
- The Block’s leadership changes post-loan scandal.
- The deal is worth $50 million.
Foresight Ventures, an investment firm with a keen eye on digital assets, has entered a pivotal role by acquiring a majority stake in The Block. This transaction follows a series of leadership changes sparked by controversies in the media company.
Foresight Ventures’ Acquisition of The Block
On Monday, November 13, the landscape of crypto media shifted as Foresight Ventures, known for its substantial investments in the sector, took control of The Block.
Foresight Ventures, a Singapore-based venture firm with a history of hefty investments in the crypto and non-crypto sectors alike, has invested $50 million in the company. In communication with DailyCoin, Foresight Ventures strategic partner for ecosystem development Bitget confirmed that the fund’s substantial investment has won it a majority stake in The Block.
This acquisition comes in the wake of a transparency issue in The Block. Notably, former CEO Michael McCaffrey resigned due to non-disclosure of loans received from Alameda Research.
In 2021, McCaffrey had reportedly secured $43 million in loans from Alameda Research, using the funds to acquire additional stakes in The Block and to funnel capital into its operations. The loans only came to light post-FTX’s downfall, leading to McCaffrey’s resignation.
Foresight Ventures, the venture arm of the Bitget exchange, has invested around $70 million in over 77 crypto and non-crypto ventures so far this year.
On the Flipside
- Since the Alameda loan scandal, The Block has seen a change in leadership, with Forest Bai and Tony Cheng at the helm.
- Forest Bai, CEO of Foresight Ventures, and General partner Tony Cheng will join The Block’s board of directors.
Why This Matters
The Block’s ability to maintain rigorous journalistic standards under new ownership is critical for its credibility and the broader crypto information ecosystem.
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