Due to the downfall of cryptomarket, yet another company pauses withdrawals from funds with crypto exposure.
SkyBridge Capital, a New York-based global investment firm, pauses the withdrawals from the Legion Strategies fund, which has crypto assets and crypto company stocks.
The news broke on July 19, through Bloomberg, a business and market news website, which claimed that inside sources are sharing details about the suspension of redemptions.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Tezos? XTZ Cryptocurrency Easily Explained (ANIMATED)
According to the sources, a crypto investor fund freeze has been forced due to the downfall of the crypto market. It turns out that Legion Strategies fund has around 20% of its portfolio in private stocks and 10% in cryptocurrency.
The Legion Strategies fund, founded in 1994, is one of the smallest funds in SkyBridge's pocket. It is claimed to have around $250 million in it. However, it’s the first time in 28 years that the withdrawals from the fund have been suspended.
The official Skybridge website lists many private stock investors related to crypto, however, the ones invested in the Legion Strategies fund are unclear.
Later on that day, Anthony Scaramucci, founder, managing partner of SkyBridge Capital, and former White House Communication Director confirmed the suspension of withdrawals in an interview with CNBC.
During the interview, Scaramucci claimed that there is nothing to worry about, stating:
The fund is unlevered, so there’s definitely no fear of any liquidation whatsoever and about 18% of the fund is in what we would call crypto exposure.
During the same interview, when talking about what kind of crypto is exposed to the suspended fund, Scaramucci mentioned Bitcoin and FTX stocks.
According to the regulatory SEC filing, The Legion Strategies fund acquired digital assets, such as Bitcoin, Algorand, and Ethereum through other funds of SkyBridge Capital.
