FTX Us Ex-President To Launch Crypto Startup, Seeks $6M Funding

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December 4, 2022 by Mishal Ali

The ex-president of FTX US, Brett Harrison, is looking for investors to launch a cryptocurrency startup, barely one month after the dramatic collapse of Sam Bankman-Fried’s exchange, as reported by The Information on December 2nd.  

According to two persons with knowledge of the situation, Harrison has indicated to at least one venture capital company that he hopes to raise $6 million at a valuation of $60 million. However, specifics are still susceptible to change.

The report claimed that Harrison is looking for funds to develop a business to create cryptocurrency trading software for major investors. Additionally, the company seeks to simplify the exchange of digital assets on controlled and decentralized exchanges for professional investors.

The report also asserts that Harrison’s step is noteworthy, given FTX’s bankruptcy and the increasing questions about whether client monies were misappropriated:

While the scrutiny is focused on former FTX CEO Sam Bankman-Fried and people in his inner circle, including Alameda CEO Caroline Ellison, Harrison’s efforts also come as venture capital funding for crypto startups has been slowing sharply.

FTX Collapse & Its Growing ControversyHarrison had prior experience with conventional trading companies like Jane Street, where he had previously collaborated with Bankman-Fried, before joining FTX. Over a month before FTX’s iconic collapse, Harrison stated on September 27th that he would be leaving his position as president of the exchange and transitioning into an advising role.

Therefore, Harrison reacted to the news of the FTX collapse by expressing his surprise and sorrow at the situation. He said:

I very much hope for an outcome that mitigates the impact on all those affected, and I’m grateful to everyone who is stepping up and continuing to build a stronger industry for us all.

In a string of significant crypto-related disasters this year, Sam Bankman-Fried’s exchange demise was the largest. A million or more creditors are expected to be facing billions of dollars in damages as a result of the cryptocurrency crash that it triggered.

However, regulators in the US, other financial industry leaders, and cryptocurrency entrepreneurs are concentrating on the need for a viable set of laws and better transparency in the wake of FTX’s collapse.

Related Reading | Coinbase Decry Apple’s Ban On NFT Transfers

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