Ex-FTX US President Seeks $6 Mln In Funding For A Crypto Startup

Key Takeaways

• Brett Harrison stepped down as FTX US president in late September
• The proposed crypto startup will be focused on building crypto trading software for big investors.

As per media reports, Brett Harrison, the former president of FTX’s U.S. arm, is seeking  $6M in funding to launch a crypto startup. According to people familiar with the matter, the proposed crypto startup will be focused on building crypto trading software for big investors.

The startup will provide crypto traders with a platform to write algorithms for their strategies and also access different types of crypto markets, both centralized and decentralized.  The latest development comes nearly a month after FTX, its affiliated crypto trading firm Alameda Research, and about 130 of its other companies commenced voluntary Chapter 11 bankruptcy proceedings in Delaware.

According to The Information, which first reported the story, Harrison has told at least one venture capital firm he is looking to raise approximately $6 million at a valuation of $60 million. Harrison left FTX just weeks before it slid into bankruptcy amid accusations of misused customer funds.

Earlier this year, in September, Harrison stepped down as the president of FTX US and moved into an advisory role. At the time of his departure, he had worked at FTX U.S. for a little over a year. Before working at FTX, Harrison has worked at traditional trading firms, such as Jane Street, where he once worked with FTX’s Sam Bankman-Fried. Earlier this month, Harrison had stated that he “was surprised and saddened” by the collapse of FTX. 

The Ex-FTX US President’s attempt to raise money for a crypto startup comes when investors are increasingly getting weary of being associated with digital asset firms. According to recent data, Crypto startups raised $5.1 billion less in the third quarter of 2022 compared to the first quarter.

FTX’s collapse has triggered a crypto contagion affecting numerous centralized crypto lending firms, such as BlockFi, which recently filed for bankruptcy. Since FTX declared bankruptcy in early November, leading crypto exchange, Gemini paused customer withdrawals citing FTX exposure.