Anthony Scaramucci – the founder of Sky Bridge Capital and the former communications director for President Donald Trump – has given his thoughts on the FTX debacle and the fall of what was labeled one of the biggest and most prominent crypto exchanges in the space.

Anthony Scaramucci Gives His Thoughts on FTX

FTX took a 30 percent stake in Sky Bridge last September. At the time of writing, the company has filed bankruptcy and the executive behind it all, Sam Bankman-Fried, has resigned from his post. The company began experiencing trouble in mid-November after it attempted to be bought out by Binance following what online posts described as a “liquidity crunch.”

From there, it looked like there was going to be a merger between Binance and FTX, though this was later cancelled given Binance felt the problems FTX was dealing with would be too big to handle. This is what led the firm into further demise and eventual bankruptcy.

At the time of writing, Bankman-Fried is getting a lot of flak for his role in the enterprise’s fall. Some are claiming that he played around with investors’ money and took too many chances. Others are stating that his greed and malicious nature led to FTX’s collapse. Scaramucci is dismissing all these claims for now, and he’s reluctant to say that there was any fraud contributing to what occurred.

In an interview, he commented:

I don’t want to call it fraud at this moment because that’s a legal term. I would implore Sam and his family to tell the truth to their investors. Get to the bottom of it.

Scaramucci feels that more than likely what happened is Bankman-Fried made mistakes while coping with the bear market, which he thinks can be said for many companies including Voyager Digital and even the Celsius Network, two firms that eventually went on to file bankruptcy earlier in the year. He doesn’t necessarily think these companies are bad or did anything malicious.

Rather, he wonders if they simply “lost their cool” as a means of dealing with the bearish conditions 2022 has brought on, and that they weren’t thinking clearly during this time. He further stated:

When Three Arrows went down, it could be possible that Sam had difficulty then, and then he made some decisions that turned out to be disastrous for him and both sides of this business.

Maybe Nothing Nasty Was Happening

Scaramucci then went on to say that he had spent time personally looking into what might have happened, and his research leads him to conclude that there was no illegal activity involved. He said:

Duped I guess is the right word, but I am very disappointed because I do like Sam. I don’t know what happened because I was not an insider at FTX.

The post Anthony Scaramucci on the Fall of FTX appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ December 22, 2022 5:00 pm