The FTX downfall won’t be the last such occurrence in the cryptocurrency field, according to Kevin O’Leary, who recently spoke with news publishing house. He asserted that some of the “unregulated exchanges” are unwilling to collaborate with an auditing firm to offer proper liquidity details, which has turned institutions away.
“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.”
Due to worries about how platforms portray their proof-of-reserves, the auditing firm Mazars Group, whose former clients included Binance and Crypto.com, has ceased all engagement with cryptocurrency clients.
“Frankly, you know, it’s very hard to find an auditor that wants to touch this stuff right now because of the unregulated cowboy environment. It’s all going to end, and yes, there’ll be many more zeros,”
Before the exchange’s downfall, the investor was one of FTX’s most ardent supporters. He signed a $15 million contract to serve as its ambassador. A few weeks prior to the catastrophic crash, O’Leary added that the platform is one of the safest venues for investors in October of last year.
The Canadian also owns 139,000 Class A Common Shares and 12,631 Series A Preferred Shares of West Realm Shires, the company that controls FTX US, and 25,944 Common Shares and 6,486 Series B-1 Preferred Shares of FTX Trading, respectively, through his investment company O’Leary Ventures.
Sam Bankman-Fried, the former CEO of FTX, has subsequently lost all of those assets, yet he has refused to label him a scammer.
Recently, the Bahamian government worked with its US counterparts to deport the 30-year-old American back to his country of origin. After posting a record-breaking $250 million bond, a New York Federal judge approved his release; at the moment, SBF is living with his parents and wearing a monitoring device.
Recent charges against him included conspiracy to commit wire fraud and money laundering, to which he entered a not guilty plea. The first week of October has been set aside for his trial.
Hackers recently targeted Kevin O’Leary after his account was compromised and he announced a Bitcoin and Ethereum giveaway. According to the account, O’Leary decided to donate 5,000 Bitcoin and 15,000 Ethereum because he had profited greatly from cryptocurrencies over the previous few years.
There was a link in the tweet as well that anyone could use to take part in the fake crypto giveaway event. Twitter removed the fake giveaway posts a few hours after they were posted. By tapping the link in one of the tweets, investors could access the official website for O’Leary’s Bitcoin (BTC) and Ethereum (ETH) giveaway.
