Scaramucci recalls ‘Treason’ by SBF: ‘I considered him a friend’

Anthony Scaramucci described his close relationship with former FTX CEO Sam Bankman-Fried, his family, and how he felt after the magnitude of the FTX collapse came to light during a panel discussion at the World Economic Forum in Davos.

“I had a close relationship with [Sam Bankman-Fried]”I considered him a friend,” Scaramucci said at Casper Labs’ Blockchain Hub event. “So I have to tell you that the betrayal and the fraud are bad on many different levels. It certainly hurt my reputation.”

While getting to know Bankman-Fried, Scaramucci said he also got to know his father, who was a tenured professor at Stanford Law School and worked on a charity with Bankman-Fried’s aunt. He also recalled traveling to Miami with Kevin O’Leary of Bankman-Fried and Shark Tank, a former FTX spokesperson, to stage a mock Shark Tank for kids.

“I felt close to him and I felt close to his family,” he said.

Scaramucci, co-founder and managing partner of investment management firm SkyBridge Capital, told the audience that while he didn’t want to sue FTX for fraud in the past, he was now comfortable with it.

‘If anyone here has read Dante Alighieri’s Inferno, you know what the ninth circle of hell is reserved for,” Scaramucci said. “It is for the betrayal of a friend who lives with the devil – the ninth circle of hell on the frozen lake,” he said.

Despite the dark images, Scaramucci said Bankman-Fried’s actions do not spell the end of blockchain or crypto.

“That’s why we have blockchain and crypto, because we’re trying to create a decentralized situation where we don’t have to like or trust each other,” he said. “We can transact with each other in a way that technology essentially sanctifies.”

“I’m not going to stop taking risks,” he said addedas he wrapped up the panel titled “Not for the Faint of Heart: Reflecting on Decades of Wins, Losses, Bulls & Bears.”

On November 11, 2022, FTX and several of its subsidiaries filed for bankruptcy, days after a bank ran on its FTT token. The following month, Bankman-Fried was arrested in the Bahamas and extradited to the United States on eight conspiracy charges.

Before his arrest, Bankman-Fried made several appearances, including an interview with New York Times columnist Andrew Ross Sorkin at the 2022 Deal Book Summit — against his lawyer’s wishes — where he attempted to explain the situation and apologize.

“I thought Sam was the Mark Zuckerberg of crypto, I didn’t think he was the Bernie Madoff of crypto,” said Scaramucci. “I was wrong.”

Before the collapse of FTX, Bankman-Fried offered bailouts to several crypto companies as the 2022 crypto winter continued. “The reason I did it, frankly, is because it doesn’t seem clear to me if there are others out there doing that,” said Bankman-Fried during an interview on the Decrypt GM podcast.

In September 2022, two months before FTX filed for Chapter 11 bankruptcy protection, FTX Ventures purchased a 30% stake in Scaramucci’s SkyBridge Capital, valued at approximately $45 million. At the time, Scaramucci’s tone was more friendly towards the former billionaire, who now faces life in prison if found guilty of all charges.

“Sam is a visionary who has built incredible businesses that are synergistic with the future of SkyBridge,” Scaramucci said at the time..

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