It’s the worst week in crypto history; Anthony Scaramucci elaborates on why

During his appearance on CNBC’s Squawk Box, SkyBridge Capital CEO Anthony Scaramucci mentioned that for many of his investor friends, this week has been the worst in the crypto space’s history, as Bitcoin and other digital currencies have plummeted.

Bitcoin and Ethereum in particular fell well below the $18,000 and $1,500 levels, and BTC even dipped briefly to the $16,500 zone.

FTX Causes ‘Worst Week in Crypto’

The collapse of crypto prices was caused by the bankruptcy of the FTX crypto giant and its founder Sam Bankman-Fried and ended up with a huge liquidity gap of over $8 billion that Sam is now trying to raise from investors.

Responding to a question from CNBC’s Squawk Box co-host Andrew Sorkin, Scaramucci shared that he believes the problems with FTX and Bankman-Fried started in the summer, around June, and that’s when Scaramucci began to wonder where all the money was flowing into the FTC and Alameda Research from.

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“Feeling cheated? What red flags do you think you missed?” @andrewrsorkin traces @scaramucci on @SBF_FTX and the collapse of @FTX: pic.twitter.com/gvOahv4lDp

— Squawk Box (@SquawkCNBC) 11 November 2022

The CEO of SkyBridge admitted that he knows Bankman-Fried personally and was on a trip with him recently when they traveled together to the Far East to help Sam raise money.

This happened after Bankman-Fried bought a 30% share in Scaramucci’s financial services. Scaramucci said that on Tuesday of this week, he and his legal and compliance teams began discussing whether they could help the FTX chief salvage the situation. They came to the conclusion that there was much more than just a “bailout” for FTX and its connection with Alameda Research.

“I wouldn’t call it a scam”

Scaramucci added that he does not want to go so far as to call FTX insolvency fraud because that is a legal term. We don’t know all the details of what happened, he said, and he prefers to leave it to the authorities to decide.

However, Scaramucci believes that the impact of this event is bad for the crypto industry. He reckons that Bankman-Fried and his parents should have an honest talk with the investors in FTX and tell them the truth about what happened.

“I would implore Sam and his family to tell the truth to their investors,” says @Scaramucci on @SBF_FTX. “I don’t want to call it fraud now, because it’s a legal term and none of us know it. We’ll have to leave it to the regulars. But I’m worried about it.” pic.twitter.com/ldgPDMqlsQ

— Squawk Box (@SquawkCNBC) 11 November 2022