Scaramucci invests in a crypto company founded by the former head of FTX in the US

(Bloomberg) — Anthony Scaramucci said he is investing in a company founded by Brett Harrison, the former chairman of defunct cryptocurrency exchange FTX US.

Most read by Bloomberg

Scaramucci will use his own money for the venture to show his support for Harrison, he said in an email.

Harrison was seeking up to $100 million in funding for the crypto software company, Bloomberg News reported last month. The proposed idea was software that crypto traders could use to write algorithms for their strategies and to access different types of crypto markets, centralized and decentralized, two people familiar with the matter said at the time.

“Anthony has been a true mentor and friend to me since I joined the crypto industry two years ago,” Harrison said in response to questions from Bloomberg News. “I am honored to have him as an investment partner and know his guidance will be invaluable as we begin this new chapter.”

FTX Ventures, the venture capital arm of Sam Bankman-Fried’s now-defunct crypto empire, announced in September that it had taken a 30% stake in Scaramucci’s Skybridge Capital and that the companies would expand their cooperation in venture capital and digital asset investing. Amid FTX’s slide into bankruptcy, Scaramucci said SkyBridge would work to buy out that stake — and later said he had done some due diligence on Bankman-Fried before the deal, but that it was “not enough.”

Harrison worked at FTX US for about 17 months and resigned in September. Prior to that, he worked at Citadel Securities and quantitative trading firm Jane Street, where he worked with Bankman-Fried.

Scaramucci commented on the investment in response to Harrison’s Twitter thread about his experiences at FTX US.

“Brett was a great developer and had a deep understanding of FTX’s product,” Bankman-Fried said in comments to Bloomberg News about Harrison’s Twitter thread. “While I strongly disagree with much of what he said, I have no desire to engage in a public debate with him, nor do I feel it is my place to publicly challenge his performance unless he authorizes me to do so.”

Bankman-Fried added, “I feel bad for what happened to all the FTX employees and I wish him the best.”

— With help from Annie Massa and Hannah Miller.

(Adds commentary by Sam Bankman-Fried in the last two paragraphs)

Most read from Bloomberg Businessweek

©2023 Bloomberg LP

Leave a Comment

Your email address will not be published. Required fields are marked *