Skybridge Capital, the Investment Management Company co-founded by Anthony Scaramucci has suspended withdrawals/redemption on its Legion Strategies Fund, one of its funds that is linked to digital currencies.
The revelation was made by Bloomberg, citing sources close to the issue. According to the sources, as much as 20% of the Legion Strategies Fund is held in private companies, most of which are somewhat difficult to sell in the secondary market.
The Legion Strategies Fund also reportedly has exposure to such digital currencies as Bitcoin (BTC), Ethereum (ETH), and Algorand (ALGO) through Skybridge Capital’s other funds that invest directly in these digital assets. The halt of the Legion Strategies Fund became somewhat necessary seeing the massive slump that both the digital currency ecosystem and the stock market have experienced thus far this year.
The sources confirmed that the Legion Strategies Fund counts Sam Bankman-Fried’s FTX Derivatives Exchange as one of the companies in its portfolio.
While the withdrawal from the investment fund is expected to usher in a panic mode amongst investors, Skybridge Capital appears more relatively liquid as Legion Strategies is notably one of the smallest funds being managed by the investment company.
The encompassing turmoil of the digital currency ecosystem in the Year-to-Date (YTD) period has also notably dragged many legacy crypto-linked companies to halt withdrawals and even file for bankruptcy alongside.
Celsius Network comes off as one of the key names that come to mind as the crypto lender suspended withdrawals from over-exposure to failed crypto assets servicing firms like Three Arrows Capital (3AC). While both 3AC and Celsius have filed for bankruptcy, other embattled crypto firms like BlockFi and Babel Finance among others are exploring avenues by which they can wade through and survive the crypto winter.
There is no indication that the withdrawal halt on Skybridge Capital will affect the firm’s overall operations despite also recording a 5.5% slump in its Multi-Adviser Hedge Fund Portfolios as of March 31 this year.