FTX Targets ‘The Mooch’: Bankrupt Crypto Exchange Sues Scaramucci’s SkyBridge

In a significant legal move, FTX, the now-bankrupt cryptocurrency exchange, has initiated legal proceedings against Anthony Scaramucci and his investment firm, SkyBridge Capital, as part of its efforts to recover funds for its creditors. This action is part of a broader legal strategy where FTX has filed 23 lawsuits in the Delaware bankruptcy court, targeting entities from which it seeks to reclaim investments made in the past.

The lawsuit sheds light on the activities of Sam Bankman-Fried, FTX’s founder, during the 2022 crypto winter. According to court documents, Bankman-Fried was accused of engaging in a deliberate campaign of influence through significant financial investments aimed at enhancing his stature in political and financial circles. One such investment was directed towards SkyBridge Capital, where FTX allegedly invested $67 million, highlighting Bankman-Fried’s strategy to leverage Scaramucci’s extensive network in finance, politics, and society.

FTX’s legal filings argue that these investments were not made with the intent of generating financial returns but rather to bolster Bankman-Fried’s personal profile. The claim points out that the benefits to FTX were minimal, if not non-existent, suggesting these were moves to inflate Bankman-Fried’s influence rather than strategic business decisions.

SkyBridge Capital, once managing assets worth $9 billion in 2015, saw its assets under management shrink to $2.2 billion by the time of these transactions. This decline set the stage for what FTX describes as a bailout scenario, where Scaramucci was looking for financial support during the crypto market downturn.

The relationship between FTX and SkyBridge took a notable turn in September 2022 when it was announced that FTX would take a 30% stake in SkyBridge. Scaramucci described this move as a step towards building SkyBridge’s future, focusing on the next decade. However, this partnership was short-lived due to FTX’s subsequent financial collapse and the legal troubles that followed, leading to Bankman-Fried’s arrest on fraud charges in the Bahamas.

This lawsuit underscores the complexities and the fallout from the crypto boom and bust cycle, where high-profile investments can quickly shift from promising partnerships to legal battles as financial tides turn. For creditors of FTX, these legal actions represent a critical avenue for potentially recovering some of the massive financial losses incurred when the crypto exchange imploded.

Reference: Bloomberg

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About Ari Haruni 266 Articles
Ari Haruni is the Co-Founder & CEO of Wall Street Pit.

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