Former FTX US President Seeks Fresh Capital for a New Crypto Startup: Report

Brett Harrison, the former president of embattled crypto exchange FTX’s U.S. division, is seeking to raise fresh capital for a new crypto startup, according to a report by the Information on Friday, citing two people with direct knowledge of the matter.

Harrison Seeks $6M for New Crypto Startup

The report said Harrison told at least one venture capital firm he is attempting to raise $6 million at a $60 million valuation for the startup. The report added that the startup would focus on building crypto trading software for large investors.

The report further stated that the startup aims to make it easier for large investors to buy and sell crypto assets on centralized exchanges and decentralized protocols.

Harrison stepped down as president of FTX US in September after serving more than 16 months on the job. At the time, the former executive noted that he would continue working in the industry. After stepping down, Harrison moved into an advisory role at the company.

SBF Claims FTX US Is Solvent Despite Bankruptcy Filing

The latest development comes a few weeks after FTX, alongside FTX US, filed for Chapter 11 bankruptcy protection in the United States after facing a liquidity crunch connected to its own token.

However, in a recent Twitter post, FTX founder and former CEO Sam Bankman-Fried (SBF) said when he filed both firms for bankruptcy last month, he was “fairly sure FTX US was solvent” and that all US customers could be made whole. SBF added that he was surprised why US withdrawals were turned off. 

Crypto Firms Struggle Amid FTX-Sparked Contagion

Meanwhile, several crypto firms have been struggling to stay afloat due to the shocking collapse of one-time savior FTX. Recently, crypto lender BlockFi filed for Chapter 11 bankruptcy in the United States after suspending withdrawals on its platform due to a “lack of clarity” over the status of FTX.

Crypto brokerage firm Genesis could also reportedly file for bankruptcy if it fails to raise fresh capital for its lending unit Genesis Global Capital, which halted withdrawals, citing “abnormal withdrawal requests” on its platform, which stemmed from FTX’s contagion.