Despite losing money on FTX, Canadian businessman and Shark Tank star Kevin O’Leary believes Sam Bankman Fried’s future businesses are worth investing in.
O’Leary recently disclosed the extent of his exposure to the exchange, arguing that the company’s demise has a “silver lining.”
Mr. Wonderful admitted in an interview on Tuesday that FTX was one of his “bad investments,” but that it is still safe due to his asset diversification. Nonetheless, the investor took a “significant hit.”
He claimed to be a shareholder of FTX and FTX US, with multiple accounts with the exchange that have now been frozen.
Additionally, he said,
“I’ve talked to many other institutional investors that use the platform – they also have zero balances.”
Furthermore, he noted that everyone is discussing this with their accountants, lawyers, auditors, and compliance departments. “It’s an extraordinary circumstance,” Kevin O’Leary adds.
O’Leary previously worked as an FTX spokesperson. He said last month that the exchange was the last place he’d expect to “get in trouble.”
He also predicted in June that crypto would hit rock bottom once a “big player” was eliminated, which he now believes was FTX.
Another silver lining, according to O’Leary, is that the exchange’s debacle is putting pressure on regulators to provide clearer industry guidelines in the future.
Key pieces of crypto legislation, such as the Digital Commodity Act, are receiving renewed attention after languishing in Congress.