Kevin O’Leary, a Canadian investor and host of the popular TV show Shark Tank, has stated that the unregulated cryptocurrency market will lead to the collapse of other companies.
In a recent interview for Kitco News, O’Leary said that the downfall of FTX, a crypto lending company that halted withdrawals in November 2022, will not be the last such event in the industry.
O’Leary believes that some of the “unregulated exchanges” are hesitant to work with auditing firms to present accurate liquidity details, which has pushed institutions away.
He stated that “If you’re asking me if there’s going to be another meltdown to zero? Absolutely. One hundred percent it’ll happen, and it’ll keep happening over and over and over again.”
This statement comes after the auditing company Mazars Group (whose former clients were Binance and Crypto.com) recently suspended all work with cryptocurrency customers due to concerns regarding how platforms display their proof-of-reserves.
Despite his concerns with trading venues, O’Leary remains a proponent of the digital asset industry, particularly bitcoin. He admitted to investing 5% of his wealth in cryptocurrencies.
He also stated that it is hard to find an auditor that wants to touch the industry due to the “unregulated cowboy environment.”
It should be noted that O’Leary was an advocate of FTX prior to its collapse, even serving as its ambassador and inking a $15 million agreement.
He also declared in October 2022 that the platform was one of the safest places for investors. However, he lost all of his funds in the collapse and refused to classify Sam Bankman-Fried, the former CEO of FTX, as a fraudster.
