Scaramucci talks FTX, Sam Bankman-Fried and ‘the worst week in cryptocurrency history’

Scaramucci talks FTX, Sam Bankman-Fried and ‘the worst week in cryptocurrency history’

Anthony Scaramucci, founder of SkyBridge Capital and a short-time Trump administration communications director, spoke Friday morning on CNBC’s “Squawk Box” about friend and business partner Sam Bankman-Fried, CEO of crumbling crypto exchange FTX.

FTX, which took a 30% stake in Sarmucci’s SkyBridge Capital in September, is facing potential bankruptcy after a “bank run” on the crypto exchange left it about $8 billion short. Bankman-Fried says he was unaware of the extent of user leverage because of poor internal labeling of bank-related accounts.

Anthony Scaramucci was hesitant to attribute the exchange’s failure to malice.

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

Bankman-Fried tweeted Thursday morning that he is “sorry,” admitting that he “f—ed up” and “should have done better.”

Bankman-Fried said his first mistake was poor internal labeling of bank-related accounts, which meant that he was “substantially off” on his sense of users’ margin. “I thought it was way lower.”

Scaramucci speculated that Bankman-Fried could have made mistakes in the throats of the crypto bear market, specifically when Three Arrows, a massive cryptocurrency hedge fund, liquidated in June 2022.

“When Three Arrows went down, it could be possible, Andrew, 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,” he said Friday, speaking to CNBC’s Andrew Ross Sorkin.

Scaramucci told Squawk Box that we went to the Bahamas to help Bankman-Fried as an investor and friend. When he got there, he says, it appeared beyond the point of a simple liquidity rescue.

Binance seems to have made the same assessment. The world’s largest cryptocurrency firm broke a non-binding deal to rescue FTX after conducting due diligence and the news “regarding mishandled customer funds and alleged US agency investigations.”

Scaramucci said he didn’t see evidence of this mishandling when he and other investors first screened FTX as a potential business partner.

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

“There’s a lot of distress in the markets, and a lot of my friends think it’s the worst week in cryptocurrency history,” Scaramucci said.

Scaramucci said he plans to buy back his equity in SkyBridge from FTX, noting that his firm did not hold assets at FTX due to a potential conflict of interest.

FTX partial withdrawals resume in some global hubs, as Sam Bankman-Fried continues hunt for a backer

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