Skybridge Capital Halts Withdrawals on Fund with Crypto and Stocks Exposure
2022.07.20 17:05
Skybridge Capital Halts Withdrawals on Fund with Crypto and Stocks Exposure
Anthony Scaramucci’s Skybridge Capital has suspended withdrawals from its Legion Strategies Fund, one of its funds with crypto and private stocks exposure, after the sharp decline in the prices of the assets.
Legion Strategies Fund Halts Withdrawals
Legion Strategies, a SkyBridge Capital fund, is a Cayman Islands-based vehicle that manages approximately $250 million.
According to Anthony Scaramucci, 18% is comprised of crypto-related investments, while investments in private stocks make up an additional 20% of the fund’s portfolio.
In clarifying the reason for the suspension of withdrawals, Scaramucci explained that the board had voted to halt withdrawals due in part to the difficulty Skybridge faced in selling private stocks, and not because of the crypto market’s downtrend, as had been theorized by many.
Scaramucci Reassures Investors of the Safety of their Funds
In order to calm the investors, many of whom feared a repeat of the Celsius Network saga, Scaramucci went on record to reassure investors that the pause to withdrawals in his company’s fund was a temporary measure.
In the interview, Scaramucci stated: “those are temporary suspensions,” adding that investors need not worry as there is “zero risk of any asset liquidation” due to the fund being unleveraged.
On the Flipside
- In a statement that sparked controversy, after filing for Chapter 11 bankruptcy, lawyers of crypto lender Celsius Network have stated that users relinquished their legal rights to their funds upon depositing them on the platform.
Why You Should Care
Scaramucci’s calming words may help to ease the tension building around funds with exposure to crypto.
Despite the downtrend, SkyBrige remains bullish on crypto. Find out more in:
SkyBridge Capital Goes All-in and Remains “Extremely Bullish” on Crypto
For the latest on bankrupt crypto fund Three Arrows Capital, check out:
Three Arrows Capital (3AC) Files $30M Lawsuit Against Own Company While on the Run
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