Former FTX US President Reportedly Resigned Due to a “Long-Standing Disagreement” with Bankman-Fried

A new 45-page report detailing accounting failures at the defunct cryptocurrency exchange states that at one point, an unidentified superior instructed employees to “come up with some numbers? Idk.”

According to the report, Harrison had grave concerns regarding the management of FTX US, including “the lack of proper delegation of authority, formal management structure, and key hires.”

His bonus was “dramatically reduced” when he voiced his concerns to Bankman-Fried and Nishad Singh, former director of engineering, and he was reportedly told by corporate attorneys to apologize to Bankman-Fried. He declined.

These claims are consistent with those Harrison made on Twitter, in which he claimed that he was threatened with termination and that “Sam would destroy my professional reputation” if he did not rescind his written complaint and apologize. This incident allegedly took place in April of 2022.

Sunday when contacted by CoinDesk, Harrison confirmed the allegation but declined further comment.

According to the report, another employee in the legal department of the exchange was terminated after voicing concerns about Alameda’s lack of corporate controls, competent leadership, and risk management.

Over the course of 45 pages, Ray’s report portrays FTX and related entities as a loosely managed web of companies governed by Bankman-Fried and his coterie of associates, who cared little for the organization or internal controls.

Reconstructing FTX’s balance statements has been “an ongoing, bottom-up exercise that continues to require significant effort by professionals,” in part because FTX’s leadership routinely lost track of accounts and neglected to process checks that “collected like junk mail,” according to the report.

The document states that Alameda was unable to articulate its own positions, let alone hedge or account for them. In a summary of the portfolio for June 2022, employees were allegedly told by an unnamed superior to “come up with numbers? Idk.”

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