Kevin O’Leary Reportedly Paid $1 Million per Hour to Promote FTX
According to an on-chain investigator, Kevin O’Leary, the millionaire investor and “Shark Tank” television personality, received $15.7 million in compensation for promoting the now-defunct cryptocurrency exchange FTX. The payment was for twenty service hours, 20 social media posts, one virtual lunch, and five autographs.
O’Leary’s Promotion of FTX and its Downfall
While the specific details of the agreement are undisclosed, it is known that O’Leary served as a paid spokesperson for FTX in Q4 2022. The exact timeline of when he began promoting the exchange is unclear. However, by November 2022, FTX collapsed with over $8 billion of customer funds. Bitcoin prices experienced a flash crash during this time.
Controversy Surrounding O’Leary’s Deal with FTX
Questions have been raised about the $100 million deal offered to O’Leary by FTX. An attorney leading a class-action lawsuit against several FTX promoters has looked into whether any laws were violated. It remains uncertain if O’Leary will face penalties for potentially violating securities laws.
Sam Bankman-Fried’s Criminal Trial Begins
The news about O’Leary’s substantial payments coincides with the start of Sam Bankman-Fried’s criminal trial. Bankman-Fried, the former boss of FTX, is facing seven criminal charges including wire fraud and securities fraud. Prosecutors allege that over $8 billion in customer funds were funneled through Alameda, a trading wing associated with FTX.
The trial is expected to last six weeks and key witnesses, including Bankman-Fried’s former girlfriend and former MIT roommate, are expected to testify. If found guilty, Bankman-Fried could face up to 100 years in prison.
Hot Take: O’Leary’s Lucrative Promotion of FTX Raises Ethical Concerns
The revelation of Kevin O’Leary being paid $1 million per hour to promote FTX raises serious ethical concerns. As a public figure and influencer, O’Leary’s endorsement carries significant weight and can influence people’s investment decisions. The collapse of FTX and the loss of customer funds further highlight the potential harm caused by such promotions. It is crucial for regulators to closely examine these practices to protect investors and maintain the integrity of the cryptocurrency industry.
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