FTX US Former President Shares Experience With SBF

Former FTX US President Brett Harrison said cracks appeared in the relationship between him and Sam Bankman-Fried (SBF) six months into his tenure at the firm in a January 14 Twitter thread.

The friction grew when Harrison advocated for the independence and separation of the FTX US team and its parent company. Harrison recalled that this conflict made him see SBF’s “total insecurity and intransigence when his decisions were questioned.”

1/49 Many have asked questions about my time at FTX US and why I left when I did. As I indicated earlier this week, I’m happy to begin sharing my experiences and perspective publicly.

— Brett Harrison (@BrettHarrison88) January 14, 2023

Harrison Highlights “Dramatic Change” in SBF’s Behaviour

Harrison said he initially saw SBF as a “promising” individual with “intellectual curiosity.” However, the early conflict highlighted the “dramatic change” in his behavior.

18/49 Like many of us, I have family and friends who live with addiction and mental health problems, and I’ve seen how these problems often manifest without much warning in early adulthood. I thought that might be a contributing factor, and initially felt sympathetic.

— Brett Harrison (@BrettHarrison88) January 14, 2023

Meanwhile, Harrison suggested that a “contributing factor” to this change could be “addiction and mental health problems.” He said:

“Sam was uncomfortable with conflict. He responded at times with dysregulated hostility, at times with gaslighting and manipulation, but ultimately chose to isolate me from communication on key decision-making.”

SBF Allegedly Threatened Harrison’s “Professional Reputation”

The former FTX US executive alleged his professional reputation was threatened when he formally complained about the firm’s organizational problems. Harrison said he was instructed to retract the complaints and apologize to SBF.

29/49 In response, I was threatened on Sam’s behalf that I would be fired and that Sam would destroy my professional reputation. I was instructed to formally retract what I’d written and to deliver an apology to Sam that had been drafted for me.

— Brett Harrison (@BrettHarrison88) January 14, 2023

Harrison continued that the event solidified his resolve to leave the exchange. However, he couldn’t leave abruptly, so he had to finish building, release the US stock brokerage, and oversee employees through their mid-year reviews.

On Fraud Charges Against SBF, Others

Meanwhile, Harrison said the fraud charges raised against SBF and his acolytes have been difficult for him to “assimilate.”

According to Harrison, he highlighted concerns he believed bedeviled growing start-ups. He continued that he never thought of them as fraud. He added that SBF and his inner circle perpetrated the scheme.

The former FTX US president said he and his colleagues would have reported them to the authorities if they suspected the fraud.

SBF was granted a $250 million bail and pleaded not guilty to the fraud charges. On the other hand, his acolytes like Caroline Ellison and Gary Wang have pleaded guilty to the charges against them.

FTX Collapse Impacted Harrison’s New Business

Also, Harrison stated how the exchange collapse had impacted his new business as investors are wary of associating with anything FTX.

Harrison further highlighted how his resignation was interpreted to mean knowledge of the fraud at FTX. He added that some have said he was seeking a “plea deal.” Harrison said:

“I haven’t been accused of wrongdoing and am not a target in any investigation.”

Harrison resigned from FTX US on September 27. Skybridge founder Anthony Scaramucci said he is investing in the former FTX US president’s company with his funds.