Brett Harrison, the former President of the US division of the defunct FTX exchange has secured $5 million in a seed funding round for his new crypto software startup, Architect.
The former FTX executive gave the announcement on Twitter, stating that the funding round was backed by prominent crypto businesses including Coinbase Ventures, Circle Ventures, Salt Fund, and SVAngel, among others.
Harrison added that Architect was created with the aim of developing software that makes both centralized and decentralized cryptocurrency markets more accessible to institutional investors and huge investors. He also emphasized that the firm’s commitment to safety, self-custodial, and open-source will be embodied in the products designed by protocol.
Harrison hinted that he was creating a crypto software firm in December when he said he was seeking to raise $6 million at a valuation of $60 million. This was shortly after the sudden collapse of the defunct FTX exchange and there were speculations that he was involved in the fraud case with Sam Bankman-Fried, FTX’s former CEO.
Subsequently, Harrison distanced himself from the Bankman-Fried fraud allegations. He also announced that his new firm would be backed by Anthony Scaramucci, the founder and managing partner of Skybridge Capital.
Crypto Industry Amidst Ongoing Challenges
Despite the collapse of exchanges and the current crypto winter, there appears to be hope for the crypto industry’s recovery. While individual exchanges may fail, the decentralized nature of cryptocurrencies means that the overall crypto market is not dependent on any single exchange.
Furthermore, as the industry matures and regulations are implemented, the likelihood of exchange failure should decrease.
In an effort to ensure that investors’ funds are being protected from future exchange failures and fraud, Japan’s regulators have advised global policymakers to treat cryptocurrencies like banks and tighten regulation around digital assets in the same way as traditional financial investments.
While stricter regulations are being advocated, some crypto firms are taking the bold step of establishing and funding new and existing businesses in order to ensure the crypto industry’s recovery. For instance, Sortium technology firm recently raised $7.8 million for Web3 development.
