Former FTX US president raises $5M for new crypto software firm

The former head of FTX US is launching a new cryptocurrency software company and has raised $5 million from several investors, according to Bloomberg. 

Brett Harrison, who served as president of FTX US between May 2021 and September 2022, has received backing from Coinbase Ventures and Circle Ventures to launch a new software startup. SALT Fund, Motivate VC, P2P Validator, Third Kind Venture Capital, Shari Glazer of Kalos Labs and Anthony Scaramucci also participated in the seed round.

His new startup, dubbed Architect, will develop trading software for large institutions looking to access crypto markets. He told Bloomberg that he hopes Architect “will allow people to get their confidence back in trading in this industry.”

Harrison departed FTX US months before the company collapsed under the shoddy guidance of Sam Bankman-Fried, who headed the global FTX cryptocurrency exchange and several other companies under its purview. FTX US was one of the roughly 130 companies under FTX Group to file for bankruptcy in November.

In a lengthy Twitter thread on Jan. 14, Harrison explained why he departed the crypto exchange. He claimed that “cracks began to form” in his relationship with Bankman-Fried six months into his tenure and that the former FTX CEO exhibited “total insecurity and intransigence” anytime he was confronted with conflict.

Related: FTX profited from Sam Bankman-Fried’s inflated coins: Report

Bankman-Fried faces eight criminal charges and up to 115 years in prison for allegedly defrauding investors and violating campaign finance laws, among other infractions. On Jan. 5, he pled not guilty on all counts.

Crypto venture capital began to dry up in the second half of 2022 as the bear market took its toll. The collapse of FTX and its contagion effects appear to have placed further pressure on capital raises as crypto markets reorient to the new reality. According to Bloomberg, Harrison initially aimed to raise as much as $10 million for Architect at a $100 million valuation.

All Dutch and English crypto news!

Analyse: Bitcoin koers stijgt gemiddeld 16% in april, wat kan je verwachten?

De Bitcoin koers stijgt gemiddeld 16 procent in april, normaal gesproken is de vierde maand van het jaar dus ontzettend bullish. Wat kunnen we volgende...

FTX former execs and promotors to settle class lawsuit for $1.3M

Former FTX and Alameda executives agreed to share information to aid in the class group’s legal fight against other alleged FTX promoters. News Own this piece of...

Bitcoin Cash open interest surges past $700M ahead of BCH halving

Bitcoin Cash hasn’t seen open interest at this level since May 2021, when its price was nearly 2.5 times higher. Markets News Own this piece of crypto...

New Bitcoin ETFs now hold 500,000 BTC and GBTC outflows slow

The newly launched spot Bitcoin ETFs, excluding Grayscale have now amassed $35 billion worth of Bitcoin in just 54 days of trading. News Own this piece of...

Beste exchanges

Koop je crypto bij Bitvavo