The Blubber

Per Yahoo Finance

After the collapse of FTX with its founder, Sam Bankman-Fried facing multiple charges and maintaining that he is not guilty, the former president of FTX US has already raised $5 million for a new crypto startup.

Harrison raised new investment for a startup that will be building trading software to cater to institutions and large investors. The name of the startup is called Architect, per Bloomberg, and so far, there have already been big-name investors.

Two of the major investors in this new startup are Circle Ventures, a crypto venture capital firm, and Coinbase Ventures, the investment arm of Coinbase. Harrison said that he didn't suspect the multibillion-dollar fraud, per Business Insider, and that he raised concerns regarding how the company operated.

Harrison: "I raised concerns at the company believing that the management and organizational issues I saw were typical of growing start-ups,"

The former FTX US president then noted that although he saw problems, as an experienced executive in financial services, he took it as his responsibility to correct them and even bring the company to new heights. He then added that he did not suspect the fraud.

Harrison: "I never could have guessed that underlying these kinds of issues — which I'd seen at other more mature firms in my career and believed not to be fatal to business success — was multi-billion-dollar fraud,"

The former FTX US president wanted to raise funds for Architect in December. Harrison wanted to raise $6 million, placing the valuation of his startup at $60 million, per The Information.

Harrison was also public about his struggles with raising capital for the new startup due to his ties with the now-collapsed FTX, which resulted in customers losing billions of dollars. Per Investing, the former FTX US president debunked rumors that linked him with the SBF's fraud which could land him 115 years in prison if he is found guilty.

Another report also highlighted how SBF's use of influence to inflate prices and coordinate with Alameda was a "pump-and-dump."

See flow at unusualwhales.com/flow.

Other News:

• Sam Bankman-Fried could face up to 115 years in prison if convicted on all eight counts against him
• Sam Bankman-Fried reportedly inflated some crypto prices with Alameda Research

Resources:

Yahoo Finance

Bloomberg

Business Insider

@BrettHarrison88 on Twitter

The Information