Kevin O’Leary: “Not a Good Investment”

Investor and Shark Tank star Kevin O’Leary announced that he lost almost all of the $15 million he had paid him to become the official brand face of bankrupt cryptocurrency exchange FTX. On a recent episode of CNBC’s “Squawk Box,” O’Leary was asked how he failed to properly assess the risks involved in investing in and promoting the FTX platform. O’Leary said he fell into the “groupthink” trap and none of his investment partners lost money.

The famous investor announced that he was paid about $ 15 million to promote FTX. But he said he was left with nothing from the deal after taxes, agency fees, a $1 million equity investment in FTX, and the $10 million he used to buy crypto are now stranded on the FTX exchange.

“The whole deal was just under $15 million total. I invested about $9.7 million in crypto. I think that’s what I lost. I don’t know. It’s all at zero. I don’t know because my account was wiped out a few weeks ago. All the data, all the coins, everything…

It wasn’t a good investment… I don’t always make good investments, luckily I make more good investments than bad ones, but it was a bad investment.”

In early November, FTX announced that it had filed for Chapter 11 bankruptcy in Delaware, after a week of speculation about the company’s status. Notably, FTX USA has also been included, despite the former CEO’s claims that US stock markets are doing well. It was later revealed that the exchange’s affiliated trading company, Alameda Research, lent $10 billion in client assets to finance its risky transactions. With a $10 billion gap on its balance sheet, the referral price is between 8 and 12 cents per dollar of deposit requests.

O’Leary was one of many celebrities who persistently promoted FTX online. When O’Leary first started promoting FTX, he said that it was FTX’s compliance systems that drew him to invest in the crypto exchange. “I’ve finally resolved my cryptocurrency compatibility issues,” wrote O’Leary on LinkedIn and in a deleted tweet dated August 2021. As reported, FTX investors have filed a class action lawsuit against SBF, the founder and former CEO of the crashed cryptocurrency exchange, as well as several celebrities who promoted the platform. These celebrities include Kevin O’Leary, Golden State Warriors, Shaquille O’Neal, Udonis Haslem, David Ortiz, Naomi Osaka, and more.

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