Does it tell the whole story? by DailyCoin

Former US President of FTX Criticizes SBF: Is He Telling the Whole Story?
  • The former head of FTX US has shot Sam Bankman-Fried. However, critics say it may not tell the whole story.
  • Critics point to the FDIC complaint against Harrison, saying he falsely claimed deposits in FTX US were insured.
  • Moreover, one of the backers of Harrison’s new crypto project is Anthony Scaramucci, a financier with close ties to the SBF.

Former FTX US Chairman Brett Harrison has come under the spotlight after sharing details about his role at FTX US and his relationship with Sam Bankman-Fried.

Harrison claimed that he knew nothing of any possible fraudulent activity at the company and that he initially thought working at FTX was his “dream job”.

However, many people have wondered about the details of Harrison’s narration on the FTX drama. Specifically, they refer to a cease and desist letter from the FDIC to Harrison, which alleges that he falsely claimed US FTX deposits were insured.

The FDIC says this could cause harm to depositors. Moreover, his critics say he must have known they were uninsured.

Moreover, Harrison’s FTX discoveries come when he launches his cryptocurrency project. He has already found backers, including Anthony Scaramucci, a financier and former Trump staffer associated with FTX.

Harrison Attacks Against SBF – Former Colleague of Jane Street

In a long Twitter thread, Harrison explained that he had a falling out with Bankman Fried, which led him to quit.

Harrison, who knew SBF while working at the quantitative trading firm Jane Street, said that SFB completely changed its character as CEO of FTX.

His former student at Jane Street, whom he describes as a “sensitive and intellectually inquisitive person” who loves animals, later displayed “utter insecurity and obstinacy” when anyone questioned his decisions.

According to Harrison, the former conscientious junior trader was prone to later responding with “disorganized hostility”, “gaslighting” and “manipulation”.

He also claims that his former colleague threatened to destroy his professional reputation if he did not follow through. Harrison left the company on September 27, 2022, and began work on his cryptocurrency project.

Eight weeks after his resignation, FTX, FTX US, and Alameda Research went bankrupt. Weeks later, the Department of Justice charged Bankman-Fried with money laundering and wire fraud.

Harrison claims to know nothing of the fraud—critics are skeptical of his account

Harrison has tried to distance himself from the fraud charges against the SBF. He said it was “obvious” that the scam was “done closely by Sam and his inner circle at and Alameda”.

Harrison said, “I could never have imagined that behind these types of cases was a multi-billion dollar fraud.”

However, some people criticized his version of the story. Hedge fund manager and finance professor Patrick Boyle said Harrison missed one detail in his explanation.

Brett did not mention or explain why he announced on Twitter on July 20 that deposits on FTX are stored in FDIC insured accounts in the user’s name. He (should have) known at the time that this was not true, Boyle said.

The allegations come from the FDIC and a cease and desist letter to Harrison. The FDIC letter states that Harrison made statements on his professional Twitter account saying that consumer deposits benefited from deposit insurance.

The complaint wrote that FTX also identified itself as “FDIC insured.” These statements were “false and misleading,” according to the FDIC, and furthermore, were “likely to mislead customers, and potentially harm customers.”

The FDIC said depositors at FTX in the US did not benefit from deposit insurance. Only deposits in registered banks have been made. This is why after FTX US went bankrupt, depositors could not access their funds. They will likely lose everything.

A financier with previous ties to FTX supports Harrison

Harrison did not address the FDIC’s complaint. Instead, he focused on his cryptocurrency project, which is a cryptocurrency trading platform for large investors.

While he acknowledged that his role in the collapse of FTX made fundraising more difficult, he did find at least one backer. Anthony Scaramucci, a financier with close ties to FTX, said he would invest in the Harrison project.

Scaramucci may have played an important role in providing SBF with the connections it needed to establish FTX as a reliable player. Moreover, FTX has invested millions in Scaramucci SkyBridge Capital.

In a recent interview, Scaramucci said he once considered SBF a friend. He also saw in his deception a personal betrayal, for which the SBF would go to the “ninth circle of hell”. Scaramucci’s relationship with Harrison remains intact.

“It’s important to pick up and fight for your friends especially when they suffer setbacks. Don’t shy away,” Scaramucci tweeted shortly after announcing his investment in Harrison’s crypto project.

The FDIC complaint and his choice of backers raise some questions about Harrison’s role at FTX.

on the flip side

  • There is no evidence that Harrison knew of any fraud or wrongdoing in FTX or FTX US.
  • There is currently no news of any investigation against Harrison for his role as President of FTX USA.

Why should you bother

Harrison’s story is likely to shed light on the inner workings of FTX, whose collapse cost depositors billions.

See the original on the Daily Queen

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