Hook: The FTX collapse continues to unfold, and now it’s going after one of its biggest partners—SkyBridge Capital—seeking to recover millions in questionable investments. What’s at stake, and why should you care?
In November 2022, the world watched as FTX and its sister company Alameda Research crumbled, causing around $8 billion in losses to its customers. It’s a huge deal because this wasn’t just any exchange; it was one of the biggest crypto platforms at the time. Now, as part of its bankruptcy proceedings, the FTX bankruptcy estate (basically the legal body handling the mess left by FTX) is suing SkyBridge Capital and its founder, Anthony Scaramucci, for over $100 million.
Why is this lawsuit important?
You need to understand that FTX isn’t just trying to get its money back. The company is going after people and companies it believes were involved in wasteful spending and bad deals before everything fell apart. This is about trying to recover funds that were misused, so they can pay back customers who lost their money when FTX went bankrupt.
The Key Moves Leading to the Lawsuit
- Sponsorship Deal: In early 2022, former FTX CEO Sam Bankman-Fried (aka SBF) made a big move by sponsoring Scaramucci’s SALT conference for $12 million. This was one of the first signs that FTX was pouring money into SkyBridge’s deals.
- Investment in SkyBridge Coin Fund: After that, in March 2022, SBF directed Alameda Research (the trading arm of FTX) to invest $10 million into SkyBridge’s cryptocurrency fund. That’s a lot of money for a partnership that seemed to benefit SkyBridge more than it did FTX.
- Massive Purchase of Stake: In September 2022, FTX took it a step further and bought a 30% stake in the operating companies behind SkyBridge for $45 million. FTX’s lawyers argue that this investment made no financial sense. They claim FTX could have bought the same cryptocurrency assets at a lower price directly, instead of handing so much money to a third-party fund with less expertise in crypto.
- Alleged Breach of Contract: FTX also claims that SkyBridge broke the terms of their deal by selling off part of the digital assets—Bitcoin and Solana—without getting permission from FTX first. This is a big issue because those assets could be worth $120 million today, but SkyBridge allegedly sold them for only $60 million last year.
Why Should You Care?
This isn’t just about FTX trying to get its money back. This lawsuit highlights major issues in the world of crypto investments, sponsorships, and partnerships. When things like this happen, it makes you question how safe your investments are, who’s really managing your funds, and whether companies in the crypto space are being held accountable for their actions.
If you’re interested in crypto or financial markets, this case shows just how much can go wrong when companies make poor financial decisions, waste money on high-profile sponsorships, or break contracts. It’s also a wake-up call about the importance of transparency and responsibility in the investment world—especially in a space like crypto, where the stakes are incredibly high.
Key Terms to Remember:
- FTX: A major crypto exchange that went bankrupt in 2022, causing huge losses.
- Alameda Research: FTX’s sister company, involved in crypto trading.
- SkyBridge Capital: An investment firm owned by Anthony Scaramucci, involved in the FTX lawsuits.
- Sponsorship Deal: A financial agreement where one company funds an event in exchange for promotion, like the $12 million FTX gave for Scaramucci’s SALT conference.
- Stake Purchase: Buying part of a company—in this case, FTX bought a 30% share in SkyBridge for $45 million.
- Breach of Contract: When one party doesn’t follow the agreed-upon terms of a deal.
By understanding these terms and the actions leading up to this lawsuit, you’re building knowledge about how big financial deals in crypto are done—and how things can go wrong when companies lose sight of what’s best for their investors. It’s a lesson in the importance of smart decision-making and holding companies accountable.
