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Lack of Regulations Will Trigger More Crypto Meltdowns, Predicts Kevin O’Leary

Kevin O’Leary predicted that the crypto business would see “many more zeros” in the future.

Kevin O’Leary, a well-known Canadian investor and the host of the TV show Shark Tank, feels that the unregulated bitcoin environment will lead to the demise of other businesses.

He does, however, remain a supporter of the business, saying that he has put 5% of his money in bitcoin.

In a recent interview with Kitco News, O’Leary predicted that the FTX collapse will not be the last of its like in the cryptocurrency world. He asserted that some “unregulated exchanges” are unwilling to collaborate with an auditing firm to offer proper liquidity details, which has pushed institutions away:

“If you’re wondering if there will be another breakdown to zero? Absolutely. It will absolutely happen, and it will continue to happen again and over again.”

Remember that Mazars Group (whose previous clients included Binance and Crypto.com) recently ceased all work with cryptocurrency customers owing to concerns about how platforms show their proof-of-reserves.

“Frankly, you know, it’s really hard to find an auditor that wants to touch this stuff right now because of the uncontrolled cowboy environment. Everything will come to an end, and certainly, there will be many more zeros,” the Canadian added.

Despite his reservations about trading venues, O’Leary remains a strong advocate for the digital asset industry, notably bitcoin. He admits to lately purchasing BTC amounts, while his whole allocation to it represented 5% of his fortune.

Prior to the exchange’s demise, the entrepreneur was one of its most vocal supporters. He signed a $15 million contract to serve as its ambassador. O’Leary also stated in October (a few weeks before the historic meltdown) that the platform is one of the safest venues for investors.

Furthermore, the Canadian holds 139,000 Class A Common shares and 12,631 Series A Preferred shares of West Realm Shires (the company that owns FTX US), and his investment entity, O’Leary Ventures, owns 25,944 common shares and 6,486 Series B-1 Preferred shares of FTX Trading.

He has since lost all of those assets, yet he continues to refuse to label Sam Bankman-Fried (the former CEO of FTX) as a fraudster.

The Bahamas’ officials recently collaborated with their US counterparts to deport the 30-year-old American back to his home country. SBF is currently living at his parents’ residence, wearing a tracking device, after a New York Federal judge granted his freedom following a record $250 million bond.

He just pled not guilty to various allegations, including conspiracy to commit money laundering and wire fraud. His trial date has been set for early October.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.