CEFIPEOPLE

Interview with FTX spokesperson Kevin O'Leary: Believes SBF is not lying, still optimistic about the future of crypto

share
Interview with FTX spokesperson Kevin O

Kevin O’Leary, the host of "Shark Tank" and spokesperson for FTX, discussed fundraising discussions with SBF before the bankruptcy of FTX, his views on SBF, regulatory issues, and why he remains optimistic about the potential of cryptocurrency in an interview.

FTX Ambassador Kevin O'Leary: We Look Stupid

Kevin O'Leary is the host of the U.S. ABC reality TV show "Shark Tank." He went from calling Bitcoin garbage in 2019 to becoming an ambassador for FTX in 2021. Despite previously criticizing the cryptocurrency, he now openly discusses crypto investments, attributing his prior statements to regulatory pressure.

However, with the collapse of FTX, the platform's celebrity ambassadors might face lawsuits. During an interview, Kevin O'Leary admitted that the investment made them look foolish but he remains optimistic about the future of cryptocurrencies.

Coordinating the Acquisition of FTX

When talking about the crypto market, FTX is inevitably mentioned. As an ambassador, what are you currently thinking?

I am transparent about being an investor in FTX and FTX US, as well as a paid ambassador. I believe the failure is not related to the crypto field itself but rather poor policies and regulations that led to this situation. This incident does not affect the potential of crypto itself, but it is undoubtedly a significant blow.

This was a bad investment that made us look embarrassing. Despite conducting extensive due diligence, looking at the list of investors in each round, it is even more awkward. We appear like fools.

Did you discuss anything with SBF after the collapse?

At the time, I was speaking in Dallas about disruptive innovations in the crypto field, which was quite ironic. While waiting at the airport, a member of my investment team called me to discuss:

What if we acquire FTX? If CZ can acquire it at a low price, why shouldn't we participate? FTX's previous valuation was a whopping $32 billion.

I wasn't sure if the bank run's funding gap was $6 billion or $8 billion. I needed the correct figures, so I messaged someone within FTX. About two minutes later, SBF called back and confirmed it was $8 billion.

I didn't think it was an astronomical figure, so I immediately started contacting several sovereign wealth funds. However, shortly after, the SEC chairman announced an investigation into the FTX incident. Therefore, with regulatory authorities getting involved and potential lawsuits looming, the option of acquisition was no longer viable. I texted SBF saying the acquisition wouldn't happen.

That's how it unfolded. Subsequently, FTX was hacked, my account records were wiped, and I started discussing with regulators and lawyers. I believe this story has not even reached its first chapter, and it will be talked about for years. Currently, nothing is clear.

Still Supporting SBF?

It was reported that you previously supported SBF and his return. Do you have anything to say about this?

This report did not provide the full context, but I can explain.

I have always advocated not to fear entrepreneurs who have experienced catastrophic failures in investments. I have found that the pain of failure, whether for men or women, motivates them to clarify where they went wrong, and that's the experience.

During the time of this interview, it was still in the early stages of negotiation between Binance and FTX. I wasn't aware of the actual situation then, but it is evident now that SBF is not someone to invest in.

The key point I wanted to emphasize at the time was whether you can invest in entrepreneurs who have experienced failure. Of course, you can, but it is clear that FTX's situation was rapidly changing every hour.

Did you misjudge something about SBF?

The fact is, I must honestly say that I am not always right. I have made thousands of investments, and not all of them are successful.

Regarding FTX, I have spoken with investors in each round. We were stunned by the results and did not come up with any answers.

What kind of person is SBF?

He is an interesting person. I remember meeting him two and a half years ago, and we discussed many things about the FTX platform. I was particularly interested in whether FTX's regulatory framework complies with international standards.

Our relationship started from that moment, and later I became an ambassador for FTX, meeting him occasionally at major summits.

I think he is an interesting person, but this depends on the facts that will be revealed later. Unlike other financial collapses, everything, every transaction, happened on the blockchain with FTX. There is nothing to hide, and the truth will eventually come to light.

Do you hate him?

No, I don't hate people. Investing inevitably involves risks, and I am glad that this investment was made with my own money.

Mark Cuban said if he were SBF, he would be very worried about spending a long time in jail. What's your view?

I don't know, but I always say that during the 2008 financial crisis, which was probably ten times, a hundred times bigger than the FTX incident, I didn't see any bankers being jailed.

Everyone is just guessing, and I prefer not to speculate and wait for the facts.

Will the FTX Incident Intensify Regulatory Progress?

I don't understand why various policies from global securities exchanges cannot be applied to crypto exchanges.

I have had the opportunity to speak with lawmakers and learned that regulatory pressure is immense now. With the midterm elections over, after January 3rd, we can expect regulatory agencies to take action.

About the Market and Investments

I understand that you previously advocated for diversified investments in the crypto field. Has this strategy changed?

I invest a sum of money and forget about it. Recently, I invested in the Series B funding of Sui Network developer Mysten Labs, founded by former Facebook members. I find it an interesting platform, and I have always supported new teams.

I don't think I need to have 32 different positions. I am reducing them, as we discussed before, in Canada, there are only about 17 tokens available for investment, which gives me peace of mind. I won't hold more than 17 cryptocurrencies.

I heard that at one point you sold gold and invested in cryptocurrencies. Do you regret that now?

I didn't sell my gold position. I see no reason not to allocate 5% to gold. But honestly, I believe the crypto market will collapse in a few weeks, which presents a great entry opportunity. I will definitely buy some BTC, ETH, and maybe two other tokens.

We always see some major players going bankrupt in the crypto market, but this is a double-edged sword. Market elimination of players who don't understand leverage management or lack experience is a good thing, while the remaining excellent teams and projects continue to progress.

You must have foresight in this matter. I have no doubt about the potential of cryptocurrencies, such as the possibility of stablecoins becoming the primary payment mechanism. I am still a believer, and the market will be full of opportunities and high volatility. I may not buy at the bottom, but I must admit that Bitcoin looks very interesting.

Therefore, I will establish some positions in the coming weeks. The market is currently experiencing tax loss selling, and the time is almost here, probably until December 15th.

Kevin O'Leary: Believes SBF Did Not Lie

Note: After investigation, Kevin O'Leary later tweeted that he believes SBF.

This interview was released on December 1st. Kevin O'Leary initially did not seem to be on SBF's side, but he later tweeted that after watching SBF's interview with The New York Times, he and American hedge fund manager Bill Ackman shared the same view:

As an investor in FTX, I lost millions of dollars and was completely battered as an ambassador. But after listening to the interview, Bill Ackman and I are in agreement that this kid SBF told the truth.

These actions by Bill Ackman and Kevin O'Leary have sparked strong criticism from the crypto community.