Skybridge Capital, an investment firm founded by Anthony Scaramucci, has halted redemptions on its Legion Fund.
First reported by Bloomberg, the Legion Fund holds crypto assets as well as investments in private firms like FTX. The fund is said to be pausing withdrawals as private equity is more difficult to sell.
Scaramucci was briefly interviewed on CNBC today where he explained the decision was made to “temporarily” suspend redemptions until they can raise capital and then when people get out they may do so orderly. He shared that the fund is down 30% to date but is up 5% – so far this month.
Crypto markets in general have been rocked with extreme volatility and rapid declines in valuations. Crypto contagion fears have spread following troubles at various crypto firms. Three large crypto-focused firms have become the poster children for excessive risk in digital asset markets: Three Arrows Capital, a crypto hedge fund, is in liquidation, Celsius Network is going through chapter 11 bankruptcy along with Voyager Digital.
Scaramucci expressed optimism that things have turned the corner at the Legion Fund:
“…the good news is we are catching a bounce now and I think things are going to get better,” said Scaramucci. There are a few people that are upset. More people that are happy…
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