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SBF accepted FTX was “self-destruct” – SBF’s mentor

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The collapse of FTX in November 2022 was a major event in the cryptocurrency industry. It was caused by a liquidity crisis and concerns about the solvency of FTX’s parent company, Alameda Research but on a larger scale, it was linked to mismanagement and bad business practices. The price of Bitcoin and other cryptocurrencies fell sharply, and the overall market capitalization of the crypto industry declined by billions of dollars.

During the dissolution of FTX, the founder of SkyBridge Capital, Anthony Scaramucci, who is also known as a mentor of SBF, visited his mentee. Anthony recounted his experience at Consensus 2023 saying that his encounter with FTX executives in the Bahamas was an ugly situation. It was a literal “war room”. 

He also revealed that his conversation with SBF was a sober moment for the former CEO of FTX. “He was apologizing to me for what happened,” Anthony said. He claimed that the downfall of FTX was due to mislabelling, he told the crowd.

Another discovery made by Anthony was that the collapse of the exchange was orchestrated by a small group of people who worked together.

Small numbers, not large, organize better crime

Speaking about the importance of the number of FTX officials he met, the SkyBrigde leader said that such a crime as committed via FTX was possible because of the minute number involved. He likened it to the fraudulent act initiated by Bernie Madoff, a fraudster.

Bernie Madoff was a Ponzi schemer who defrauded thousands of investors of billions of dollars. His scheme worked by paying old investors with money from new investors. The scheme collapsed in 2008, during the financial crisis, and Madoff was arrested. The Madoff Ponzi scheme is a reminder of the risks of investing in Ponzi schemes.

The founder added that “It’s very hard to commit a crime like this with a large group of people” as there will always be a person of conscience that speaks out.  

Despite the collapse of FTX, SkyBridge is safe – Skybridge Founder

Concerning the relationship between FTX and SkyBridge, Anthony said that while FTX bought a 30% stake in SkyBridge Capital, the collapse of FTX had no effect on SkyBridge. 

We have enough cash as well as crypto assets. “Some people in the press have written a couple of obituaries about SkyBridge, but I think our demise is greatly exaggerated,” he said.

Read also;

Crypto regulation & innovation: Can they co-exist?

From FTX fallout to crypto haven: Bahamas Prime Minister welcomes digital investors

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