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Shark Tank star Kevin O’Leary aka Mr. Wonderful has told how he and Sam Bankman-Fried (SBF) nearly raised $8 billion from institutional investors to save crypto exchange FTX before it doesn’t collapse. However, when reports emerged of FTX being investigated by multiple authorities, including the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), all interested investors disappeared.
Kevin O’Leary tried to raise money to save FTX
Kevin O’Leary explained how he tried to save cryptocurrency exchange FTX before it collapsed in an interview with The Insider, published on Sunday. O’Leary is a paid spokesperson for FTX and holds investments in the company.
Prior to FTX’s November 11 bankruptcy filing, Mr. Wonderful was speaking to a number of potential investors interested in owning a stake in the crypto exchange. SWFs wanted to invest $8 billion to save FTX, he told the publication.
Noting that Bankman-Fried called him to discuss investments, O’Leary shared:
We had a brief conversation. He was very rational. We discussed a few things about, you know, the timing of that $6 billion to $8 billion. But that was enough information for me to go back to interested sources and confirm the number was eight.
Mr. Wonderful noted that Bankman-Fried said on their call that regulators would “be tough” on the situation.
However, when reports surfaced that the Securities and Exchange Commission (SEC), Department of Justice (DOJ), and other global regulators were closing in on FTX, bailout offers immediately dried up. O’Leary continues:
All those interested parties were gone…I texted Sam…and told him that wasn’t an option.
Still, O’Leary thinks that if a sovereign wealth fund or other buyers had invested around $4 billion, investors would have felt confident keeping their assets in FTX. “So what was really on the table and debated around the world was that you could buy a $32 billion asset for $4 billion,” he said.
“There will be a mountain of litigation”
Mr. Wonderful has started moving his assets elsewhere, he revealed, noting that Canada is the only country that offers fully regulated broker exchange accounts. “We are confident that the regulatory environment in Canada is looking at accounts that cannot be mixed,” the Shark Tank star said, adding that he believes the market has yet to see the bottom of the FTX fallout. .
Commenting on the collapse of FTX which is shaking confidence in the crypto sector, O’Leary said:
There are a lot of allegations floating around… It’s a difficult situation, there’s no doubt about it. There will be a mountain of litigation.
Although regulators are investigating Bankman-Fried and the crypto industry crying fraud, O’Leary maintains that he has never met a brighter mind in crypto and blockchain. He described:
He’s a scholar… He’s probably one of the most accomplished crypto traders in the world, so I was very impressed.
Last week, the Shark Tank star said he would back Bankman-Fried again if he had another business. This outraged the crypto industry since most people believe that the former CEO of FTX engaged in multiple fraudulent activities.
Like other FTX investors, including the Singapore government’s Temasek Holdings and the Ontario Teachers’ Pension Fund, O’Leary rates all of its FTX investments. He said: “I’m writing this all from scratch… It’s unclear what can be salvaged.”
What do you think of Kevin O’Leary’s comments? Let us know in the comments section below.
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