FTX Bankruptcy Estate Takes Legal Action Against Anthony Scaramucci and SkyBridge Capital

Search
FTX Bankruptcy Estate Takes Legal Action

Subscribe Newsletter

Popular news

In the wake of the devastating collapse of FTX and its trading partner, Alameda Research, in November 2022—a failure that inflicted a staggering $8 billion loss upon the beleaguered customers of the now-defunct exchange—the FTX bankruptcy estate has embarked on a legal quest to reclaim over $100 million from SkyBridge Capital and its charismatic founder, Anthony Scaramucci. This move aims to recoup funds that were splurged by the erstwhile CEO of FTX, Sam “SBF” Bankman-Fried, on various sponsorship and investment gambits involving Scaramucci and SkyBridge, dating back to an era of ambition in 2022.

A Tapestry of Investments

A fascinating tapestry of investments and strategic alliances unfurled between Bankman-Fried and SkyBridge prior to the catastrophic downfall of FTX. A notable highlight of this financially fraught timeline is the $12 million sponsorship of Scaramucci’s renowned SALT conference in January 2022. Almost imperceptibly, in March of the same year, SBF instructed Alameda Research to allocate a hefty $10 million into the SkyBridge Coin Fund.

The Controversial Acquisition

As the narrative progressed to September 2022, FTX made a significant move by acquiring a 30% stake in the operational entities managing the SkyBridge investment assets for a whopping $45 million. Yet here lies the crux of the contention: FTX’s legal eagles have painted this investment as devoid of logical financial reasoning, arguing vehemently that the FTX Group could have procured the underlying cryptocurrency assets for far less if it had chosen to do so independently. Their claims cut deep, as attorneys asserted, “Employees at the FTX Group expressed concerns internally that it was nonsensical for Alameda Research Ventures—entrenched in cryptocurrency trading—to funnel such a substantial sum to a third-party manager, particularly one supposedly less experienced in navigating this specific domain.”

Breach of Contract Allegations

Moreover, the legal filing also accuses SkyBridge of straying from the agreed-upon terms by liquidating a portion of those digital assets in 2023 without the necessary green light from FTX—a violation of what FTX’s lawyers contend was a pivotal stipulation of their contractual arrangement. The situation grows more intricate as the lawyers elucidate that the Bitcoin holdings acquired through the FTX-SkyBridge agreement would currently flaunt a market value of $120 million, yet they were worth only $60 million when SkyBridge allegedly opted to sell them in 2023. A testament to the volatility that defines the cryptocurrency world, right?

A Flurry of Lawsuits

In a broader context, the FTX bankruptcy estate has unleashed a torrent of legal actions in recent weeks, reminiscent of a furious storm. On October 28, FTX targeted KuCoin in a lawsuit aimed at recovering over $50 million in assets that were ensnared by the exchange back in 2022. More recently, on November 7, another legal volley was aimed at Crypto.com, with FTX demanding the return of more than $11 million in assets that have been held captive by the exchange since that fateful year of 2022. The plot thickens, and the drama unfolds—a saga of legal battles that encapsulates the tumultuous nature of the crypto landscape!

Related Article