This video, you're going to find out how much money Kevin O'leary was paid as a sponsor for FTX and how much money he lost being involved with. FTX I will also reveal towards the end of the video how much money I was paid in 2022 by FTX and how much money I lost folks. Let's react to this: CNBC clip. Don't forget December 9th the expiration of the coupon code for the programs on Building Your Wealth with lifetime access to those lectures New lectures coming out the Elite Hustlers Course stocks and Psychology Money Group the Zero to Millionaire Real Estate Group Will absolutely love the programs on Building Your Wealth, your lifetime access to those and to the course member live streams for as long as those continue.

I Want to understand how much money you lost in the context but I also want to understand how the in how the investment and this ambassadorship happened at the time that it happened you did disclose it but but I want to understand how you went from calling crypto garbage at one point as you know to deciding that this was something that you were going to stay and behind. Yes, I recall that conversation calling it garbage right here on this show in 2017. That was a time when a New York Hotel was being tokenized here and I was looking at that and the regulator let me know they were not happy with that idea and that's when I stepped away from this because clearly the regulatory environment was not prepared. Then facts changed.

I saw the Canadians issue. The first ETF with Bitcoin is done. they're lying ethereum. then Switzerland opened up, then Australia opened up and then I said wait a second world's changing I got to be an investor and that started my journey.

I I'm an investor in the largest regulated Exchange in Canada called Wonderfi. the walls are called bit by we're regulated by the Osc I have my accounts up there but the I felt that getting involved when I was approached with with Sam Bankman freed that I could get an inside seat on what was considered then and I I got it I Gotta tell you, the institutional interest in in FTX on the U.S Equity was unbelievable. The amount of people that approached me saying how do I get a piece of this deal and I said at that time I am a paid spokesperson I cannot bring you as an in as an LP not a single dollar that I lost is anybody else's money except mine. That's important for me because that's an issue now.

What Kevin O'leary just described is known as speculating on regulation coming. It's frequently done with the Cannabis industry and it's frequently done on money losing companies. It's called betting on what's to come. It is an uncertain bet.

We're not sure if that regulation will come as so far it hasn't. We're not sure if that mass legalization of marijuana would come, which so far it hasn't underbite. We're not sure that those money losing SAS companies that were hot during 2020 will actually perform well going into a recession. In fact, there was a piece by balloon Burke's Cameron Cruise out this morning where he looked at ARC K's performance, lined it up with profit losing tech companies and the correlation was almost 94 and they noticed that most of Ark's historical returns came from following the beta of money losing companies not necessarily Alpha and that their Alpha has recently turned negative Now quickly.

this is what we can get back to: Kevin O'leary Beta just means how much a stock is expected to move relative to an index. So if a stock is a beta of two, the S P goes up one dollar. A beta of two stock is expected to go up two. If the stock goes up two dollars and fifty cents, that means it outperformed by 50.

Cents on its beta, that is the alpha. That's why people say they want to seek Alpha which is a greater return above what you would expect the volatility of a stock it's movement to be. Anyway, speculating on what's to come is very risky. This is why I Per personally will not speculate on a turnaround at Intel like we talked about with course members this morning.

It's also what we talked about with course members this morning. Why I won't speculate on the outcome of the ad supported tiers at Disney or Netflix Why I won't speculate on the outcome of the metaverse for Facebook Let's see those earnings actually come true and then place bets and Investments That Could lead to lower returns but it lowers risk. Which lowering risk, especially in tough times can lead to net greater returns. How much were you paid? Total deal was just under 15 million dollars all in including a bunch of agents and that I had to pay because I needed sag after release to be able to do commercials for it.

and when I did that I put about 9.7 million into crypto I think that's what I've lost. it's all at zero I Don't know because my account got scraped a couple of weeks ago. All the data, all the coins, everything. It sounds to me like Kevin's 15 million dollar deal was probably all just getting paid in tokens.

It wouldn't shock me that part of the contract was just paying Kevin O'leary and tokens. Hey, look, you'll make this money. You be a sponsor, a spokesperson. you'd be the sponsor.

Place that money into FTX Now remember in this video I'm also going to reveal what happened with law payments. Okay, we'll talk about that in this video, but let's keep going with the CNBC clip here first. So then I lost the money I invested in the equity as well. Those are those are zeros too.

It was not a good investment. Andrew Okay, I don't make great Investments all the time. Luckily I make more good ones and bad ones but that was a bad one. Okay, let me ask you this though, when you made this Arrangement this is back in August 10 2021 Yeah, you said the following You said to find crypto investment opportunities that met my own rigorous standards.

That was your phrase of compliance. I Entered into this relationship with FTX It has some of the best crypto exchange offerings I've seen on the market. Even though you are this where the spokesman an ambassador for this company? Yes, because what kind of diligence did you do around this issue of compliance given where we sit today I Obviously know all the institutional investors in this deal, we all look like idiots. Let's put that on the table.

Okay, we relied on each other's due diligence, but we also relied on another investment theme that I felt drove a lot of interest in. FTX Sam Backman Freed is an American his parents are American compliance lawyers. There were no other American large exchanges to invest in if you wanted to invest in crypto as an infrastructure play. So many of us said, wait a second who's coming to this deal We knew, For example, it sounds like group.

Think yeah, groupthink is a very common. Unfortunately in Wall Street it's basically herd mentality, right? Many people think that only happens amongst retail investors, but the reality is it happens amongst institutions as well. For example, I got involved with FTX because I saw Sequoia Capital was uh, was was backing them Kevin O'leary was backing them right. The more of these big institutions see backing, the more interested you are.

It's terrible. Obviously, everybody wishes they could go back and undo their relationship with FTX. But anyway, let's keep going. 15 million dollars.

That's pretty nice. Kevin O'leary is way more than I got uh, did you know there was no CFO Look at the end of the day to say that there was no CFO is also a bit of a falsehood. This was a nascent industry with a disrupter at its at its Helm creating positions that didn't have traditional names. Okay, that's just the way it was in retrospect.

Yes, it's a mistake. However, I feel obliged at this point to go to the end of this particularly. What does that mean? It means that I need to find where the money went I'm going to start with my own Journey with my own account um, bank and freed reached out to me last Saturday and I said look Sam um I am just one investor but my account has a zero in it and there are no accounting records. Where did the money go and to the extent you can help me, tell me, point me in the direction because I will on behalf of every other shareholder go find where this money is.

The next day we talk for over an hour and he walked me through his scenario and I learned a lot. Sorry, what did you learn I Learned first of all I said what was the large drawdown of your Capital where did the cash go? One of the biggest uses of cash was to buy back his shares from Binance, which owns 20 percent of his exchange and the reason he had to do that according to him was that every time they applied for a license anywhere the know, your client got jammed up with Binance where the ownership is opaque and he had to buy it back. That cost him a lot a couple of billion dollars. but do you think that he was paying customer funds to do that? Yeah, did he take that money from customers to get it? Well the only way to answer that question and I told him and he you know he agreed I said look Sam you start this journey with me and wherever the chips fall, that's on you because you know we're talking about this I'm going to pursue it I agreed last night when Pat Toomey called me to sit on that committee next week I will be a witness there.

you plan to testify I Agreed to testify He called me last night around eight o'clock I agree to testify I spent a lot of my time on the hill now. There's also been a lot of drama about this committee. By the way, about Maxine Waters not subpoenaing Sam Bankman Freed, She says, look, we're voluntarily inviting him to come out for an initial committee meeting on the 8th and if he doesn't show for this, then we'll subpoena him for the 13th. So I think this is kind of interesting.

Uh, we'll see how this breaks down, but definitely a lot of political tension going on here because of the expectations that Sam Bankman Free donated way more money to Democrats than he did to Republicans and therefore Democrats might be trying to Shield him. We've certainly seen a lot of media puff pieces on Sam Bankman Freed which are deemed to be potentially puff pieces because of his donations. although Sam Begman Freed says he donated to Republicans equal amounts if not more through back and black channels like channels that you can't see as visibly because he wanted the media in his favor so he hid donations to Republicans but more clearly donated to Democrats Nobody knows if that's BS we know Sam Bankman Free is really good at talking around in circles and making you think he's believable, but the reality is, at bare minimum, he was criminally negligent at FTX Uh, he had a duty to his customers and completely failed that I Believe he belongs in prison now. What about pay? So I had two sponsor agents that got me involved with FTX this year.

Keep in mind I invested 400 with with fees and everything it worked out to about 433 000 into Block Fi that's assumed to be zero. Okay, zero all gone FTX this year sponsor number One 118, 000 sponsor number Two Fifty Nine thousand, Two Hundred Eighty Seven fifty and I'm still owed apparently seventy thousand dollars which I expect I'll never see that seventy thousand dollars. So that's it. It's actually uh for for this year, uh, substantially less And I really started my FTX or really sort of expanded my FTX partnership this year.

Uh, last year was was, uh, even a smaller partnership or involvement that I had with FTX I had more of an involvement last year you might remember with suggesting you get free stocks with Weeble by going to you know met Kevin.com Weeble and met Kevin.com Life right those were bigger sponsors and Affiliates for me in 2021 by far by far than than FTX even Robin Hood was a bigger sponsor for me than than FTX Anyway, Uh, I'm still working through all these numbers and the full accounting. Uh, some folks uh, you know have seen me talk about some form of uh, relief effort after a bankruptcy of uh, or after the bankruptcy for FTX These things are still being worked through and so stay tuned for more updates. but I always want to be as transparent as possible and that's what I've got for you so far and expect more information as it comes to light. Thank you so much and we'll see in the next one.

Goodbye.