FTX spokesperson Kevin O’Leary lost $11.5 million
CNBC reporter Kevin O’Leary told “Squawk Box” anchors that he’d forfeited all his FTX cryptocurrency paycheque, worth less than $15 million.
The FTX deal was a “bad investment” O’Leary said he fell victim to “groupthink.”
O’Leary, other famous people, and other celebrities, including Tom Brady and Larry David, were sued by FTX investors who believe that the ambassadors for the exchange could have done more significant due diligence.
Investor “Shark Tank” judge and CNBC contributor Kevin O’Leary said Thursday he’d lost the whole 15 million FTX paid him to serve as a spokesperson for the now-defunct cryptocurrency exchange, which some have accused of being fraudulent.
O’Leary and other famous people like Tom Brady and Larry David were sued by FTX investors who believe that the ambassadors for the exchange should have performed better due diligence and applied the highest level of caution before promoting the crypto empire.
A Canadian investor was confronted on CNBC’s “Squawk Box “ hosts for his inability to evaluate the risks involved in investing in FTX and to promote it. O’Leary claimed that he had fallen victim to “groupthink” and that none of his investors had lost money.
“Total deal was about $15 million total,” O’Leary said. “I have put around $9.7 million in crypto. I’m assuming that’s how much I lost. I’m not sure. It’s all in zero.”
The man also stated that he owned over $1 million in FTX equity, which has been ineffective due to the bankruptcy protection process. According to O’Leary, the remaining balance of just over $4 million was consumed by agent and taxation fees.
O’Leary promoted FTX disorderly on Twitter and the internet, praising his connections to Sam Bankman-Fried, a disgraced founder, who is the subject of multiple investigations.
When O’Leary started advertising FTX, he stated that it was FTX’s compliance system that attracted his attention to investing in the cryptocurrency exchange.
“Finally, I’ve solved all my compliance issues by using #cryptocurrencies,” O’Leary wrote on LinkedIn and also in a later deleted September 2021 Tweet.
Ultimately, Delaware bankruptcy protection filings from the newly appointed FTX chief executive John Ray III would term FTX’s risk management, audit, and compliance policies “a complete breach in corporate control.”
“It wasn’t a great decision to invest in,” O’Leary said Thursday.
Credit: CNBC reports
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