Former FTX US President Brett Harrison Accused FTX Founder Sam Bankman-Fried (SBF) of ‘Gaslighting and Manipulation’ on Twitter thread Harrison left FTX.US in September 2022, two months before SBF’s crypto empire collapsed.
Sharing his experience of running FTX US for 17 months, Harrison said the SBF had taken steps to insulate him from key decisions regarding FTX’s US division.
SBF asked former colleague Harrison How to participate in FTX US “casually above the text End of March 2021.
However, things changed as Harrison realized that SBF made influential decisions about FTX US “without warning” despite being “rarely involved” in the FTX.US business. As a result, by October 2021, A “notable rift” had developed between Harrison and SBF, the former wrote.
Harrison began to promote “separation and establishment of independence” of executives, The FTX US legal team, development team, and SBF disagreed. Harrison wrote:
“In that early dispute I [SBF’s] utter insecurity and uncompromisingness when his decisions were questioned, his malice, and the instability of his disposition. I realized he wasn’t the person I remembered. “
At the time, SBF’s influence on FTX partners, media, venture capital firms, and the traditional financial industry was “broad and enduring,” Harrison wrote. In addition, SBF is a prominent political donor and has dined with Washington’s heavyweights. Elaborating on his dilemma, Harrison added:
“It’s hard under any circumstances to stand up to an insecure, prideful manager. It’s almost impossible to deafen you with stories that imply that you must be.
Harrison confronted him while feeling “It put tremendous pressure on the SBF not to raise any objections. Also, he wasn’t the only FTX US staff member who disagreed with the SBF’s decision.
Harrison said the experience and understanding of FTX US employees is often “Irrelevant and worthless” and was “very frustrating” for all staff.
In the months that followed, Harrison said,We employ a ‘wise hiring policy’ to hire experienced executives at FTX US. He also promoted “transparent communication” between SBF and the US division’s leadership team.
Harrison insisted that the responsibilities of FTX co-founder Gary Wang and engineering chief Nishad Singh be “formally identified” and shared with the larger group. In addition, Harrison proposed extending “administrative responsibility and control” beyond SBF and his inner circle.
These disagreements elicited an unpleasant reaction from the SBF, writes Harrison.
“Sam was uncomfortable with the conflict. I have chosen.”
Harrison was also asked to issue an apology to the SBF drafted for him.The incident solidified Harrison’s resolve to leave FTX US, he wrote. As a result, I gradually began to “calm down” instead of rushing to finish projects in progress to avoid negatively impacting the company.
The fraud revelations that came to light shortly after the collapse of FTX were “It’s hard to assimilate into reality,” Harrison wrote. However, he added that the organizational and management issues he stressed during his tenure are typical of growing startups.
“The root of these problems was what I saw in other, more mature companies in my career, believed not to be fatal to their success, but multi-billion dollar scale. I couldn’t imagine it being a scam. “
Harrison added that, as is evident from the indictment and guilty plea, the fraud was perpetrated by SBF and his inner circle, and that he and other FTX US employees were not involved.
He said the criminal activity was “carefully concealed” from FTX US executives.A unique means of communication with U.S. regulators and a unique authority to speak to the U.S. media. “
Harrison said if FTX US executives had any suspicions about criminal activity, they would have notified authorities immediately.