The reaction of investment funds to the bankruptcy of FTX

Anthony Scarammuci is the managing director of the Skybridge Capital investment fund. He plans to buy back FTX shares while noting that there was fraud in the SBF and FTX debacle. The SkyBridge Capital CEO said his firm can buy back the stake in the business it sold to FTX in September last year. On the other hand, Mike Novogratz, the CEO of the Galaxy Digital investment fund, meanwhile, has indicated that he would be tempted to “strike” Sam Bankman fried – ex-CEO of FTX – in the jaw.

The acquisition of SkyBridge Capital

FTX Ventures acquired a 30% stake in alternative asset manager SkyBridge for an undisclosed amount on Sept. 9, 2022, just months before FTX filed for bankruptcy in November. Speaking to CNBC Jan. 13, Scaramuci noted that, in light of FTX’s troubles, SkyBridge is making progress on acquiring that stake. Additionally, he hinted that the transaction is not expected to close until the end of the first half of this year.

The investment fund is awaiting settlement by bankruptcy officials, lawyers and investment bankers to determine exactly what will be redeemed. As for former FTX CEO and founder Sam Bankman-Fried, Scaramucci stressed that he thinks there was likely foul play. He indicates that it is now very clear that there has been a fraud. The CEO’s comments contrast sharply with his earlier statements to CNBC in November. On this occasion, Scaramucci declined to use the word “fraud” due to the legal implications of him, and urged the former FTX CEO and his family to tell their investors the truth and shed light on this debacle. According to SkyBridge’s website, the company had $2.2 billion in assets under management as of September 30, 2022, including approximately $800 million in investments related to digital assets.

The anger of the founder of Galaxy Capital

Galaxy Digital CEO Mike Novogratz says part of him wants to slap both SBF and Digital Currency Group CEO Barry Silbert for their antics during the bear market. In an interview with Bloomberg published on Jan. 13, Novogratz noted that FTX’s ordeal directly cost Galaxy about $77 million. So, this isn’t a big fan of SBF and other allegations of misconduct in space over the past year.

Novogratz has finally admitted that he is still a cryptocurrency fan despite 2022 being such a wild year for the industry. He did note, however, that he would like to get more capital off the table in early 2022, before FTX and even the Earth/MOON ecosystem goes bankrupt. However, he claims to have managed to free up more than a billion dollars before the beginning of this year.

Source: CoinTelegraph

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Krull's avatar
Krull

To the angelism of the intercessors of the current monetary system, I oppose DeFi, digital assets and the metaverse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.

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