Shark Tank investor Kevin O’Leary says several of his investments have taken a hit because of the recent FTX collapse.
In a new interview with Crypto Banter, O’Leary says his FTX account balances had dropped to zero when he checked them on Monday morning.
“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.
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.
So, my biggest concern now, and I’ve talked to the auditors about this… Where can I put them? For now, it’s Canada.”
O’Leary says the collateral damage from FTX’s disintegration is far from finished, and predicts more dominoes fall in the coming days or weeks.
“Yes, I do think that this is the bottom. But here’s what has to finish: we need the rest of the pieces… or the rest of the pine cones to fall from the tree. There are many, many forced liquidations coming in the next 10 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…
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.”
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