In the world of cryptocurrencies, the rise and fall of exchanges can often have far-reaching consequences. One such case is the now-defunct FTX, which faced a high-profile collapse in November 2022, leaving many investors disillusioned. Adding to the intrigue is the involvement of millionaire investor Kevin O’Leary, who was allegedly paid a staggering amount to promote the ill-fated exchange.

Kevin O’Leary’s Lucrative Endorsement:
Reports have emerged of Kevin O’Leary’s involvement with FTX, indicating that the millionaire investor had received an impressive compensation of $15.7 million for his promotional activities. The exact nature and timeline of the agreement remain undisclosed, but it is known that O’Leary served as a paid spokesperson for FTX during the fourth quarter of 2022. His responsibilities included providing hours of service, social media posts, a virtual lunch, and autographs to boost the reputation of the exchange.

The Turbulent Collapse of FTX:
By November 2022, FTX had suffered a catastrophic collapse, resulting in the loss of over $8 billion in customer funds. Bitcoin prices flashed-crashed to alarming lows before rebounding. O’Leary, who had invested $10 million into FTX, actively promoted the exchange through various social media channels. It is worth noting that despite the collapse, O’Leary claimed to have conducted thorough due diligence before becoming involved and believed FTX to be a well-managed exchange. Expressing his disappointment, he acknowledged the costly mistake of his association with FTX.

Questionable Promotions and Legal Implications:
While O’Leary faced criticism for his failure to identify flaws in FTX’s operations, singer Taylor Swift was among the few who voiced skepticism about the exchange’s $100 million deal. In response, Adam Moskowitz, an attorney leading a class-action lawsuit against several FTX promoters, revealed that Swift had researched the offer for potential legal violations. The question of whether O’Leary will face any penalties for alleged securities law violations remains unanswered. Meanwhile, the U.S. Securities and Exchange Commission has charged Sam Bankman-Fried, the former boss of FTX, with defrauding investors of billions of assets while operating the exchange.

Sam Bankman-Fried’s Trial:
Coinciding with the revelation of O’Leary’s lucrative payments, the trial of ex-FTX boss Sam Bankman-Fried commenced on October 3rd. This high-stakes trial, set to span six weeks, encompasses seven criminal charges, including wire fraud, securities fraud, and money laundering. Prosecutors accuse Bankman-Fried of routing over $8 billion in customer funds to Alameda, a trading wing associated with FTX, using a backdoor embedded within FTX’s code.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.