Shark Tank investor and business guru Kevin O’Leary has revealed that several of his investments have taken a massive hit because of the collapse of FTX.
Speaking with Crypto Banter in a new interview, O’Leary says that his FTX account balances are now zero as of Monday morning.
He explains, “We have to mark-to-market in our operating company every 12 hours… So, we marked-to-market on Monday morning at nine o’clock – zero on our investment in FTX international, zero on our investment in FTX USA, and zero on all assets which had disappeared from our accounts. So, that was a tough day. That’s a hit.”
He continues, “But we have many, many investments. We have compliance that forces the discipline of diversification both on positions and on institutions. We don’t own all our crypto on FTX – we don’t do that because it’s not compliant with us and our rules on how we operate our business.”
O’Leary explains, “So, my biggest concern now, and I’ve talked to the auditors about this,” he says, “Where can I put them? For now, it’s Canada.”
America’s love-to-hate Shark adds, “There are many, many forced liquidations coming in the next ten days. I would argue the time to reposition, and this is a really interesting conversation I had with our auditors yesterday. We are obviously going to be taking this as a write-off, as a tax loss. There’s no question about that.”
He explains, “We aren’t going to re-establish our positions until 31 days later because this is the first year that the IRS and other tax regulators around the world are treating this asset in the same way they treat stocks. So I think there will be a lot of selling between now and mid-December.”
Mr. Wonderful is acting like this isn’t a big hit to his portfolio. He got fooled bad.
It is weird how he’s laughing about the entire situation.