This article comes fromFT, Original Author: Ortenca Aliaj & Joshua Oliver
Odaily Translator | Nian Yin Si Tang
Odaily Translator | Nian Yin Si Tang
FTX Ventures, an investment vehicle led by billionaire cryptocurrency exchange FTX CEO Sam Bankman-Fried (SBF), will acquire a 30% stake in former Trump aide Anthony Scaramucci's fund, continuing its efforts to boost struggling The mission of the cryptocurrency market.
With this deal, SBF will again step in to provide financial support to companies affected by the collapse of the crypto market. In late July, SBF was interviewedexpressexpress
, he is willing to spend “hundreds of millions of dollars, more than we have invested thus far, and in some cases more,” to support companies affected by the cryptocurrency market crash.
SkyBridge has invested in hedge funds in the past, but Scaramucci has turned his business to cryptocurrencies. Scaramucci is understood to have served briefly as White House communications director under Donald Trump before becoming a critic of the former president.
The recent turmoil in the cryptocurrency market, including several high-profile companies filing for bankruptcy and sending cryptocurrency prices down, has affected SkyBridge's performance and prompted the company to suspend redemptions from one of its funds.On July 20th, Scaramucci was interviewedExplained the reason for the suspension of redemption of its Legion Strategies fund
. “The decision to temporarily suspend redemptions from the Legion Strategies fund was made by the SkyBridge board until we can raise capital within the fund and ensure that people exit in an orderly fashion, we keep the fund’s portfolio composition in sync, and we keep the funds,” Scaramucci said. Investors in the fund will not suffer losses. Although the Legion Strategies fund has fallen by 30% this year, it has risen by 5% this month. The fund does not add any leverage, so investors absolutely do not have to worry about any liquidation problems.”
Scaramucci further explained that about one-fifth of the fund’s capital is invested in cryptocurrency-related products, and once market conditions improve, the fund will return to normal: “About 18% of the Legion Strategies fund is invested in cryptocurrency exposure, Some of this is invested in cryptocurrencies like Bitcoin, and there is also a private investment in the trading platform FTX. As market conditions start to improve, we will resume redemptions.”
In addition, Scaramucci said in an interview with CNBC that he remains optimistic about the future of cryptocurrencies and encouraged investors to "remain disciplined."
News of the deal comes days ahead of Scaramucci's annual Salt conference in New York, where SBF is a sponsor and speaker. The pair also founded and co-hosted the digital asset conference “Crypto Bahamas” earlier this year.
SBF's largest business is the FTX exchange, which generates most of its revenue from transaction fees and relies heavily on the health of the cryptocurrency market. A plunge in token prices — already down about 70 percent from their peak levels last fall — has provided trading opportunities for stronger companies.In July this year,FTX bails out crypto lender BlockFi
, after the firm suffered losses on its exposure to now-bankrupt cryptocurrency hedge fund Three Arrows Capital.
FTX also provided BlockFi with a $400 million line of credit in the deal, which includes an option to acquire the company for up to $240 million.SBF also provided a bailout loan to Voyager Digital, after SBF declined to provide additional support, Voyager Digital eventually。
FTX also held a meeting with Celsius regarding an emergency loan. Celsius was another major victim of the cryptocurrency market meltdown, but the New Jersey-based bank suspended customer withdrawals andfile for bankruptcyfile for bankruptcy
Previously, FTX refused to provide assistance for it.Earlier this week, FTX announced a partnership with video game retailer GameStop,To help the company advance its digital asset business
. GameStop has been at the center of a meme stock trading frenzy over the last year.
Scaramucci previously compared the SBF's intervention to Gilded Age financier John Pierpont Morgan's support of the US banking system.
