Skybridge Capital has suspended withdrawals from its Legion Strategies fund, one of the firm’s crypto funds. Founder Anthony Scaramucci confirmed the move July 19 in an interview with CNBC after Bloomberg reported the move a day earlier, citing unnamed sources.
“Our board has made the decision to temporarily suspend operations until we can raise capital within the fund,” Scaramucci told CNBC. “The fund is not leveraged, so there are no concerns about any liquidation, and about 18% of the fund is in what we would call cryptocurrency.” According to Scaramucci, the independent council also made a decision about art.
“Our board has made the decision to temporarily suspend the fund until we can raise capital within the fund and then make sure that when people exit the fund, they exit in an orderly manner,” the post reads. @scaramucci. “About 18% of the fund is in what we would call #crypto exposure.” pic.twitter.com/j5AxY871n7
— Scream Box (@SquawkCNBC) July 19, 2022
Scaramucci mentioned Bitcoin (BTC) and FTX shares as examples of the fund’s crypto vulnerability. Other cryptocurrency-related companies listed as investments on the Skybridge website that are not directly affiliated with Legion Strategies, Kraken, NYDIG, Helium, Lightning and Genesis Digital Assets. Scaramucci said the Legion Strategies fund has fallen 30% since the start of the year but rose 5% in July.
Legion Strategies is an offshore fund based in the Cayman Islands with about $250 million, Scaramucci said. It is one of the smaller funds managed by the company. This was the first time the foundation had been put on hold since its inception in 1994. Skybridge itself was founded in 2005.
Scaramucci told CNBC:
“Everyone has signed an agreement with an investor, such flexibility, so I don’t think there are any surprises here, given what is happening in the market as a whole.”
Skybridge is among the financial services companies that have applied to list a bitcoin exchange-traded fund and have been rejected by the US Securities and Exchange Commission (SEC).
Scaramucci sees a bright future for crypto, but is ‘very worried’ about US politicians
Skybridge made its first bitcoin investment in late 2020 and announced in April that it was repositioning itself to “eventually become a leading crypto asset manager and advisor.”
Credit : cointelegraph.com