SkyBridge Capital halts fund withdrawals as it nears collapse

The Federal Reserve’s decision to raise interest rates to combat rising inflation has triggered a cryptocurrency and stock market crash.

Because of this, several firms have gone bankrupt, with SkyBridge Capital being the most recent victim. It has been forced to cease withdrawals as a result of this.

Founded in 2005, SkyBridge is an alternative investment firm that manages over $9.3 billion in assets. The firm has been a major player in the crypto industry, with its founder Anthony Scaramucci. Being a big proponent of Bitcoin and other digital assets.

However, the recent market crash has hit the firm hard, with reports suggesting that SkyBridge could be facing collapse. The situation has been exacerbated by the fact that Celsius, one of its major investors is also struggling financially.

Withdrawals from the SkyBridge Multi-Advisor fund have been suspended as the firm tries to stabilize its finances. This is a huge blow to the crypto industry, which was already reeling from the news of Celsius’ financial troubles.

Many firms, particularly those dealing with cryptocurrencies, have been facing increasing difficulties in the present financial market situation.

Several other firms, such as Celsius and Voyager, have already filed for Chapter 11 bankruptcy to restructure their; financial income methods to survive.

Some other companies, especially those that provide capital or operate crypto exchanges. Like CoinFLEX, has stopped allowing people to withdraw their money.

On the other hand, SkyBridge has decided to restrict its customers’ withdrawals from one of its funds. As Celsius began cleaning up its financial mess, the fund followed suit and suspended withdrawals.

The primary reason for the closure of withdrawals is the prolonged decline of the cryptocurrency and stock markets.

SkyBridge liquidation jitters

Anthony Scaramucci’s SkyBridge Capital is one of his many investment firms with SkyBridge specifically located in the United States.

Anthony Scaramucci served as the White House Communication Director for just ten days in 2017 before being unceremoniously dismissed by Donald Trump.

When SkyBridge Capital launched into the cryptocurrency world. Peter Schiff, a prominent antagonist of cryptocurrencies warned that it would be a bad decision.

Later, key players were permitted to sell off their stakes to SkyBridge for cash. And Legion Strategies was one of the funds that snapped up the chance.

One-fifth of Legion Strategies’ fund is made up of private organizations. These are difficult to sell, but one-quarter of the fund’s net assets are currently invested in other funds, managed by SkyBridge Capital: And that includes cryptocurrencies and other digital assets.

According to media reports, SkyBridge Capital has participated in an investment round led by FTX. One of the most respected cryptocurrency exchanges. The investment round was conducted to raise $300 million, and it is not clear how much SkyBridge Capital has invested.

The news of the potential collapse of SkyBridge Capital comes as a shock to the cryptocurrency community. As the firm has been a major player in the crypto space.

SkyBridge Capital was founded by Anthony Scaramucci, who is a well-known figure in the world of finance. And the firm has been an active investor in the crypto space.

Despite all of the bad feelings in the cryptocurrency sector. SkyBridge has assured its investors (customers) that there is no need to be concerned about liquidation.

Celsius, a major competitor in the crypto-lending space, has also come out to support SkyBridge. Saying that it is committed to helping the firm through this tough time.

While it remains to be seen how this situation will play out, one thing is for sure. The crypto community will be closely watching SkyBridge Capital’s every move from now on.

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