Thor VC Kevin O’Leary abandons FTX bailout plans after SEC chief’s comments

After the widely publicized collapse of FTX, which sent shock waves through the crypto sector, including Bitcoin (BTC), and culminated in the bankruptcy of the trading platform, venture capitalist Kevin O’Leary revealed that he previously had plans to bail out the crypto exchange. encrypted but surrendered. at the last moment.

In fact, Kevin O’Leary made it clear that he was in talks with former FTX CEO Sam Bankman-Fried and considered throwing his lifeline but withdrew the plans after comments from the SEC Chairman, investor Shark Tank said in an interview. with CoinDesk Posted on November 14th.

What did Gensler say?

Specifically, Securities and Exchange Commission Chairman Gary Gensler previously told CNBC’s Andrew Ross Sorkin that the crypto space was “highly incompatible” and needed more regulation that would protect investors, a position he held for some time. long.

According to Gensler, “track is running out” and “investors around the world are being hurt” by “what appear to be largely incompatible actors,” which is why, he explained, there has been “work for both we market regulators, as well as other supervisory authorities, About Anti-Money Laundering and Sanctions.

These comments were enough to make O’Leary lose interest in trying to save the crypto exchange, which was asking for $8 billion in support and with which he had a long-term investment and spokesperson relationship. He also emphasized:

The moment it happened, that was the end of the interests of all sovereign wealth funds. (…) There was no way to get that $8 billion on FTX’s balance sheet with regulators flying over their heads.”

Cautious optimism about crypto

However, O’Leary joined many crypto enthusiasts in maintaining a positive attitude toward cryptocurrencies in general, citing the status of FTX as a “decisive” moment that would “stabilize the industry” and “accelerate regulation.”

He also emphasized:

“That doesn’t kill the cipher. (…) There will be a silver lining to this disaster. There is no doubt about this. It will be called regulation. (…) What we don’t know is how many more dominoes will fall yet. We need them even We’re done.”

Meanwhile, CEO of Tesla (NASDAQ: TSLA) and new owner of Twitter (NYSE: TWTR), Elon Musk and personal finance writer “Rich Dad, Poor Dad” Both author Robert Kiyosaki expressed their belief that the crypto industry will eventually recover, although the bear market may continue for a while.

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VC bull Kevin O’Leary’s post has abandoned plans to bail out FTX after the SEC chief’s comments on Coinphony first surfaced.

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