Bloomberg: SkyBridge froze redemptions of shares in one of its funds

The investment firm of Anthony Scaramucci — SkyBridge Capital — suspended redemptions of the Legion Strategies fund after a plunge in stock and cryptocurrency prices. Bloomberg, citing informed sources, reports this.

According to agency sources, about 20% of Legion Strategies’ portfolio consists of shares in private companies that are difficult to sell. For example, the vehicle allocated funds to the FTX exchange run by Sam Bankman-Fried. Another 10% of the allocation consisted of digital assets.

Legion Strategies invests in cryptocurrencies through other funds managed by SkyBridge, including those focused on Bitcoin, Ethereum and Algorand. As of February 28, 2022, nearly a quarter of its net assets were invested in this manner.

SkyBridge introduced private Ethereum fund in July 2021. Around the same time, Scaramucci announced plans to file for a related ETF. In September, the firm raised $100 million in a vehicle focused on Algorand.

Earlier the company filed with the U.S. Securities and Exchange Commission (SEC) an application to create a spot Bitcoin ETF. In January 2022, the regulator rejected the petition, explaining that SkyBridge’s practices did not meet the necessary investor-protection requirements.

In June 2022, Bloomberg Law reported plans for the company to file a renewed application.

In April 2022, SkyBridge filed with the SEC for the launch of a fund that would invest in the mining business.

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