January 27, 2023

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Former US President of FTX Accuses SBF of ‘Gass and Manipulated’

Former US FTX chief Brett Harrison shared details of his tenure under Sam Bankman-Fred on Saturday, distancing himself from the disgraced cryptocurrency mogul who has been accused of a series of financial crimes.

In a series of Twitter posts, Harrison Bankman accused Fried of “gassing and manipulating,” claiming he was singled out as a leader as he worked to build the defunct cryptocurrency exchange’s presence in the US.

Harrison resigned from FTX’s US arm in September, just weeks before Pinkman-Fred’s crypto empire began to unravel, but he says his relationship with the former CEO began to unravel much earlier.

“My relationship with Sam Bankman Fried and his deputies has reached a point of complete deterioration after months of disagreements over FTX’s management practices,” he said. he wrote.

While Harrison led FTX US for 17 months, the former high-ranking employee said he threatened to leave the company in April of last year — after just 11 months in the position — because of “regulatory issues” he identified with FTX’s structure.

One of the issues he reported on, Harrison said, was the separation of FTX’s legal, executive, and operational teams, which had an impact on both FTX US and the company’s international trade, according to Harrison.

Ultimately Bankman-Fred disagreed with proposed structural changes early in his role at FTX US, Harrison said, describing the FTX founder as stubborn and spiteful when his authority was questioned.

Harrison added that he faced “enormous pressure not to disagree with Sam” as the head of FTX US, along with other employees who worked for the cryptocurrency exchange’s US division. He said the team’s professional background had become “irrelevant and worthless”.

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“I wasn’t the only one in FTX US who disagreed with Sam and members of his inner circle,” he said. “FTX US was made up of seasoned professionals from US financial firms, law firms, and regulated exchanges.”

Other sticking points he identified, Harrison said, were “delegation of managerial responsibility and controls,” which he said Bankman Fried and other corporate executives based in the Bahamas, where FTX is headquartered, have been dealing with.

He also wanted to make more transparent the software development responsibilities of FTX co-founder Gary Wang and Nishad Singh, the former FTX engineering chief who is now seeking a cooperation agreement with New York federal prosecutors in connection with the Bankman-Fried criminal trial.

Attorneys in the Southern District of New York deplore against Wang last month, as did Carolyn Ellison, the former CEO of Alameda Research, who led the trading firm Bankman-Fried he founded before FTX. Wang and Ellison team up on the FTX investigation. Singh and Harrison have not been charged with wrongdoing.

Prosecutors charged Bankman Fried with eight criminal counts, including fraud and money laundering. He is accused of embezzling billions of dollars in client funds from FTX to hedge Alameda operations, donate to political campaigns, buy private real estate, and expand his business.

After filing a formal complaint about the issues he identified in FTX’s structure, Harrison decided to leave the company after receiving backlash, saying he had been “threatened on Sam’s behalf” that he would be fired and his professional reputation ruined.

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Harrison explained that he was initially sympathetic to Pinkman-Fried’s unfavorable leadership, saying he believed “addiction and mental health issues” may have been a contributing factor.

The former US president of FTX had known Bankman-Fried as a junior trader at New York-based trading firm Jane Street, where Ellison also began his career as an apprentice. Harrison worked there for more than seven years before taking positions at Citadel Securities and Headlands Technologies.

In addition to the aptitude shown by Bankman-Fried in the coding class he taught, Harrison developed a positive perception of Bankman-Fried as a “sensitive, inquisitive, intellectual person who cared for animals” and senior traders “noted that he had promise”.

During Harrison’s tenure at FTX US, the company was Cease and desist speech by the FDIC for a false and misleading statement made by Harrison. In a now-deleted tweet, Harrison said that “Direct deposits from employers to FTX US are stored in FDIC-insured bank accounts in your name individually.”

When asked about the statement via Twitter on Saturday by EZPR founder and CEO Ed Zitron, Harrison blocked Zitron’s account, according to a recent post by Zitron. Zetrioni said Decrypt that Harrison’s move was “ridiculous”.

Harrison did not immediately respond to requests for comment, but responded to Zitron’s question by saying it was “impossible to have a well-meaning or fact-based discussion” on Twitter.

when Harrison Started from FTX USA In September, he announced that he would move into an advisory position with the company in the coming months, but would not leave the crypto space in his next role.

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“I have no doubt that my experience in this role will be one of the most cherished in my career,” he said. “I will be helping Sam and the team through this transition to ensure FTX finishes the year on full momentum.”

Harrison is currently launching a crypto-software company, for which he recently sought up to $100 million in financing. bloomberg mentioned Last month. Responding to Harrison’s thread on Saturday, US financier and former White House communications director Anthony Scaramucci identified himself as an investor.

Scaramucci investment firm Skybridge Capital Received 40 million dollars from Bankman-Fried’s FTX Ventures in September for a 30% stake in the investment firm. Last year, FTX also featured prominently as a sponsor at SALT in New York, Skybridge’s network event.

“I am proud to be an investor in your new company,” Scaramucci said. Carry on. Don’t look back.

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