Investor and Shark Tank judge Kevin O’Leary has revealed that he has lost almost all of the $15 million that now-defunct cryptocurrency exchange FTX paid him as its official spokesperson.
O’Leary appeared on a recent episode of CNBC’s “Squawk Box”, where he was questioned about FTX and how he failed to properly assess the risks associated with investing and promoting the platform. He said he fell victim to “groupthink” and that none of his investment partners lost money.
The renowned investor also revealed that he was paid around $15 million to promote FTX. However, after taxes, agents’ fees, a $1 equity investment in FTX, and using $10 million to buy crypto, which is now stuck on the FTX exchange, he has nothing left over from the deal.
“The total deal was just under $15 million,” O’Leary said. “I invested about $9.7 million in cryptocurrency. I think that’s what I lost. I don’t know. It’s all zero. I don’t know because my account got hacked a few weeks ago. All data, all coins , everything.”
“It was not a good investment […] I don’t make good investments all the time, luckily I make more good investments than bad ones, but that was a bad one.”
In early November, FTX announced It filed for Chapter 11 bankruptcy in Delaware after weeks of speculation about the health of the company. Notably, FTX US was also implicated in the proceedings, despite claims by the former CEO that their US exchange was fine.
Subsequently, it was learned that the exchange had lent as much $10 billion Value of client assets for making risky bets by its affiliated trading firm, Alameda Research. With a $10 billion hole in its balance sheet, the guide price is between 8 and 12 cents on every dollar of claims deposited.
O’Leary was among a long list of celebrities who aggressively promoted FTX online. When O’Leary first started promoting FTX, he said that it was FTX’s compliance system that attracted him to invest in the crypto exchange. “Finally solved my compliance problems #cryptocurrency“O’Leary wrote on linkedin And in deleted tweets since August 2021.
As mentioned, FTX investors have filed a class action The lawsuit against the founder and former CEO of the defunct cryptocurrency exchange SBF, as well as several celebrities promoting the platform. Listed celebrities include Kevin O’Leary, Golden State Warriors, Shaquille O’Neal, Udonis Haslem, David Ortiz, Naomi Osaka, and more.
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