Anthony Scaramucci, the founder of Skybridge Capital, believes that the failed crypto exchange FTX cannot be saved after its bankruptcy filing.
The betrayal of the former boss of FTX
In an exclusive interview while attending the World Economic Forum in Davos, Switzerland, the American founder and entrepreneur opined that there is no way for the exchange to be saved.
Still, Scaramucci considers FTX founder Sam Bankman-Fried a friend who was given a seat at the “high profile people” table. The problem is that he feels betrayed because Sam turned out to be “delusional” and allegedly a fraud.
Whether or not Sam will end up in jail, he adds, depends on the jury and the presiding judge.
FTX, at its peak, was among one of the largest cryptocurrency exchanges in the world, offering what was, at the time, thought to be a robust trading platform for hundreds of thousands, if not millions, of users.
However, as the crypto market tanked and Bitcoin slid towards this week’s trading range of around $20k, cracks began to emerge in FTX.
Bitcoin Price Action | Source: BTCUSD on TradingView
Finally, an explosive piece revealing the misdeeds of its founder, Sam Bankman-Fried, and various accounting errors in its finances broke the camel’s back. FTX stopped client withdrawals before news broke that they were filing for Chapter 11 bankruptcy protection in the United States. It later emerged that FTX and its business wing, Alameda Research, had misappropriated billions of client funds.
Anthony Scaramucci: Skybridge Capital is patient
Taking into account the evidence presented and the claims of the restructuring officer in charge of FTX’s bankruptcy proceedings, Anthony Scaramucci said nothing should be done.
He disclosed that his fund was not spared from the crypto winter and FTX contagion as market prices plunged, affecting his income. His core pool, Anthony said, is down 30 percent in 2022. In January 2023, there were signs of recovery, and his core pool rose double digits. Scaramucci also confirmed that Skybridge Capital is “completely unleveraged” and owns its inventory.
When asked if he lost money last year, he confirmed that his Bitcoin (BTC) is intact and he did not lose money because he did not use leverage. Leverage is a trader borrowing money to trade. The borrowed funds, along with the deposit, act as a margin that allows for higher profits. Still, there can be losses if a trader has an incorrect forecast. Traders can lose all their deposits if they use leverage and trade any other asset, including cryptocurrencies.
Anthony revealed that although FTX is in crisis and could be dissolved, the exchange was an early investor in Skybridge Capital, buying 30% of the fund. As part of the deal, the fund bought 10 percent of FTX’s FTT token only to sell it at a loss of $9.5 million.
Despite this, Antony said that they are patient and wait for “what the people from the contest say” to be able to buy back their shares. The fund, he explains, is not going to blame the disgraced FTX founder for all the problems in the crypto market or Skybridge Capital. In general, he remains confident in the prospects of cryptocurrencies.
Featured Image from Harvard Political Review, Charts from TradingView.com
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