FTX reboot: ‘I don’t see how it’s possible,’ Says a Skeptical Scaramucci

Although Anthony Scaramucci’s Skybridge Capital firm is closely associated with FTX, the Mooch is skeptical that the now-defunct crypto exchange will resurface anytime soon.

“I don’t see how it’s possible to restart FTX,” Scaramucci stated in an interview. “Not a lot of money is being made in these exchanges right now, so many of them are in the red, and they’re burning off capital that they raised in these private placements, waiting for a new bull market to start and higher volume.”

Scaramucci, the billionaire who previously worked as Donald Trump’s White House communications director for 11 days and most recently participated on the reality TV show “Special Forces: World’s Toughest Test,” made the remarks on an edition of The Block’s The Scoop podcast with Frank Chaparro.

After a run on its FTT token last year, FTX, which was previously valued at $32 billion, filed for bankruptcy protection. The company’s new leadership, which is guiding it through bankruptcy procedures, is looking into restarting the crypto exchange, albeit this would not happen until next year, if at all. 

Scaramucci’s investing firm has a tight relationship with FTX. The cryptocurrency exchange purchased a significant interest in Skybridge Capital, which also invested in FTX. 

Despite his desire to repurchase his FTX shares, Scaramucci remains skeptical that the exchange will reopen.

“I’m not sure how they’re going to restart. To be honest, I don’t see the benefits of restarting. But, you know, I’ve been wrong on so many things,” Scaramucci added, saying that any restart of the exchange would necessitate the approval of creditors and a bankruptcy court.

Lawyers for FTX have stated that they will investigate a possible restart, suggesting a reorganization plan in July that envisions a resumption in the second quarter of next year. Creditors would then assess the plan, which might be voted on in the first part of 2024. The mention of a prospective restart in bankruptcy court caused the price of FTT to skyrocket early this month.

“I see it as a net positive for Skybridge if they do restore it… That means they’re profitable, and we should be able to deal with them,” Scaramucci explained.  Scaramucci believes that FTX will sell its software and licensure and relaunch under a new brand. Despite the fact that three former FTX officials have pled guilty to criminal charges, a tiny number of FTX clients remain hopeful that the exchange will reopen. Former FTX CEO Sam Bankman-Fried has pled not guilty and will stand trial in October. 

The CEO of Skybridge Capital also commented on SEC Chair Gary Gensler’s testimony before Congress last week. During a House Financial Services Committee hearing, Republicans grilled Gensler about cryptocurrency.

Scaramucci worried that Gensler’s attitude toward the crypto industry could drive more business offshore. Coinbase recently announced that it had secured a license to operate in Bermuda and that it would shortly start an offshore derivatives exchange.