Overstock CEO Resigns Over “Deep State” Comments

American internet retailer Overstock announced on Thursday that its chief executive Patrick Byrne has resigned from the company as CEO.

The company also announced that board member Jonathan Johnson will take over as interim CEO.

A press release from earlier in the month entitled, “Overstock.com CEO Comments on Deep State, Withholds Further Comment,” had Byrne confirming reports by journalist Sara Carter.

“Starting in 2015 I (operating under the belief that I was helping legitimate law enforcement efforts) assisted in what are now known as the ‘Clinton Investigation’ and the ‘Russian Investigation’ (in fact, I am the notorious ‘missing Chapter 1’ of the Russian investigation),” he wrote, going on to say that this was “the third time in my life I helped the Men in Black.”

According to Byrne and his attorney, the comments were connected to his “romantic” relationship with Maria Butina, who was accused of working as a Russian agent and is currently in prison after pleading guilty to a lesser charge.

In a letter from Byrne, he said he “came forward in as carefully and well-managed fashion” as he could, but that it still had a detrimental effect on the company.

“Though patriotic Americans are writing me in support, my presence may affect and complicate all manner of business relationships, from insurability to strategic discussions regarding our retail business,” Byrne said. “Thus, while I believe that I did what was necessary for the good of the country, for the good of the firm, I am in the sad position of having to sever ties with Overstock, both as CEO and board member, effective Thursday August 22.”

In his twenty years as Overstock’s leader, Patrick’s vision for Overstock as an innovation leader has come to fruition. It will be my mission as I take the helm to continue and build on Overstock’s achievements and success,” said Johnson. “I am confident Overstock’s future – both in retail and blockchain – is bright.”

“Dr. Byrne has successfully created and molded Overstock over the years by pioneering the marriage of tried-and-proven competitive business principles with cutting edge data analytics and technology; a true visionary,” said Dr. Kamelia Aryafar, who was also appointed a board member now. “I am excited to join the Board and I look forward to continuing the company’s trajectory and contributing to its future success.”

“Jonathan’s diverse and extensive experience here has prepared him well to successfully oversee both our retail and blockchain businesses,” said Byrne. “Kamelia is a brilliant machine learning scientist and ecommerce veteran who has already made great contributions to our science, engineering, and analytics by advancing data-driven technology. Her addition to the Board will continue to propel Overstock forward in its visionary direction.”

“We respect and understand Patrick’s reasons for resigning and acknowledge his momentous achievement in taking Overstock from a startup twenty years ago to one of the nation’s leading online retailers and positioning it at the forefront of the blockchain revolution,” said Allison Abraham, the Chair of Overstock.com, Inc.’s Board of Directors.

“We have full confidence in both Jonathan’s ability to lead the company, and Kamelia’s expertise and insights to help the Board successfully lead Overstock into the coming months and years.”

Disclaimer: We have no position in Overstock.com Inc. (NASDAQ: OSTK) and have not been compensated for this article.