SkyBridge Pauses Withdrawals Amid Steep Decline In Stocks And Crypto
Amara Khatri - CryptoDaily
SkyBridge Capital joined a growing and unenviable list of funds that have paused withdrawals from one of its crypto-exposed funds. However, SkyBridge founder Anthony Scaramucci stepped in to assure customers that the suspension was only temporary and that no assets were at risk for liquidations.
SkyBridge Moves To Pause Withdrawals
SkyBridge Capital has announced that it is temporarily halting withdrawals from its Legion Strategies Fund due to its crypto exposure. The move was confirmed by SkyBridge founder Anthony Scaramucci in an interview on 19th July 2022, after several reports emerged about the pause through anonymous sources. He further added that no assets were at risk because the fund was not leveraged. Scaramucci stated,
“Our board made the decision to temporarily suspend until we can raise capital inside the fund. The fund is unlevered, so there’s definitely no fear of any liquidation whatsoever, and about 18% of the fund is in what we would call crypto exposure.” An independent board also took part in the decision.”
Only A Temporary Suspension
Anthony Scaramucci had to put out several fires once he confirmed the news that the Legion Strategies Fund, one of the funds managed by SkyBridge Capital, was temporarily pausing withdrawals. He stated that Legion Strategies, based in the Cayman Islands, manages around $250 million, out of which only 18% or around $45 million was comprised of investments related to crypto. The Legion Strategies Fund is exposed to crypto through investments n FTX, along with exposure to Ethereum, Bitcoin, and Algorand.
While there has been considerable speculation around the decision to suspend withdrawals, most believe that the suspension results from the bearish sentiment in the crypto markets, which have seen a significant fall. However, Scaramucci stated that the board had voted to temporarily suspend withdrawals due to the fund facing difficulties selling private stocks, which make up around 20% of the fund’s portfolio. Private company stocks are traditionally more challenging to sell. One of the fund’s private investments is in the Sam Bankman-Fried-led FTX exchange.
A Vocal Supporter Of Cryptocurrencies
Scaramucci started his investment career with a stint at Goldman Sachs before leaving and founding SkyBridge Capital, a global investment firm based out of New York City. President Donald Trump appointed him in 2017 as the White House Communication Director. However, Scaramucci’s tenure lasted for only eleven days before he was removed from his position at the insistence of White House Chief of Staff John Kelly.
However, since his departure from the White House, Scaramucci has become a vocal supporter of cryptocurrencies and blockchain technology. He has also made significant lobbying efforts on behalf of the crypto industry. SkyBridge Capital was also at the center of efforts to organize the GMI PAC, a political action committee that was formed to influence elections and government policy.
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