The head of Skybridge, Anthony Scaramucci had announced the suspension of withdrawals from one of its crypto-exposed funds. He claims that the suspension is a temporary measure with no fear of liquidation. Anthony Scaramucci announced and confirmed this move on July 19, Tuesday. He also said that the fund held 20% of its assets in various private companies that are hard to sell.
“Our board made a decision to temporarily suspend until we can raise capital inside the fund and then make sure when people get out they get out orderly. The fund has no borrowings. So, there is definitely no fear of any liquidation whatsoever and about 18% of the fund is in what we would call crypto exposure” says the head of Skybridge, Anthony Scaramucci.
“Withdrawals From One Of Its Crypto-Exposed Funds Will Be Stopped” – Skybridge
Similar to Skybridge, many crypto lending platforms have suspended their withdrawals, trading, and deposits amid this financial crisis. Vauld is a Singapore-based crypto lending and trading platform that suspended its withdrawals, trading, and deposits. It is a three-year-old startup and has raised around $27 million. Amidst these financial challenges, the company has prompted customer withdrawals of about $198 million since June 12, 2022.
In a blog post, the head of the Singapore-headquartered company, Vauld said; “We are confident that, with the advice of our financial and legal advisors, we will be able to reach a solution that will best protect the interests of Vauld’s customers and stakeholders. The startup will make specific arrangements for certain customers who need to meet their margin calls”.
Vauld is a crypto lending platform that lets consumers borrow 66.67 percent of their tokens. The main feature of Vauld is that it approves loans instantly. Following the announcement to suspend the company also reduced its workforce by 30%.
Since the Federal Reserve is trying to fight against inflation with higher interest rates, the value of the cryptocurrency market has dipped and many crypto lending platforms and exchanges have suspended their withdrawals as a consequence of this. Anthony Scaramucci said that the Legion Strategies fund was down 30% year-to-date, but up 5% in July. He also mentioned Bitcoin and FTX stock as examples of the fund’s crypto exposure.
“Everybody signed an investor agreement, this type of flexibility, so I don’t think there are any surprises here given what’s going on in the overall market”, said Anthony Scaramucci. He’s optimistic about bitcoin and blockchain but anxious about US politics and leadership. Anthony Scaramucci was the former director of communications at the White House.