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Peter Schiff Says He Warned Scaramucci After One of Skybridge's Funds Halts Withdrawals

Tue, 07/19/2022 - 12:28
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Gamza Khanzadaev
Skybridge's Legion Strategies suspends redemptions after stock and crypto market turmoil
Peter Schiff Says He Warned Scaramucci After One of Skybridge's Funds Halts Withdrawals
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As it became known from Bloomberg, one of Skybridge Capital's funds, founded by American financier Anthony Scaramucci, has halted withdrawals to clients due to the extensive fall of the stock and cryptocurrency markets. Recall that Anthony Scaramucci was appointed as Donald Trump's White House Communications Director back in 2017 but got fired 10 days later with multiple scandals.

Notorious crypto-hater Peter Schiff was not left out of the situation and commented on it. Schiff said that he warned Scaramucci that Skybridge Capital's entry into the cryptocurrency market would come at its peak. Thanks to this action, many big players were able to get into cash by selling their investments to Skybridge, the financier said.

The fund in question is Legion Strategies. According to a Bloomberg source, about one-fifth of the fund is made up of private companies that are difficult to sell. It is also reported that nearly a quarter of Legion Strategies' net assets were investments in other funds managed by Skybridge that have cryptocurrencies and other digital assets in their structures. Thus, the fund also participated in a private investment round in one of the largest crypto exchanges, FTX.

Schiff's complex relationship with crypto and Puerto Rico's officials

While Peter Schiff gives out advice and warnings, his bank, Europac, registered in Puerto Rico, is still experiencing serious regulatory problems, and customer accounts remain frozen. The last time he commented on the situation, a crypto critic said he would sell the troubled bank even for Bitcoin if it would help pay off customers. There has been no new information since then.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.