Subsequent to the collapse, O’Leary conceded that he fell victim to “groupthink” and had not done his proper due diligence on the investment. FTX had positioned itself as a white knight in the crypto industry over the summer, bailing out faltering firms during a downturn. But in early November, the company began to unravel publicly and ultimately plunged into bankruptcy alongside founder Sam Bankman-Fried’s Alameda Research.
O’Leary insists that none of his partners lost money on the deal and has sought to uncover where his investment money went. Bankman-Fried, also known as SBF, has been at the center of a growing crypto scandal amid allegations that FTX used customer money in its cryptocurrency to fund risky investments made by his trading firm, Alameda Research.
The Shark Tank host will be joined in his testimony by law professor Hilary Allen at American University Washington College; Jennifer Schulp, director of financial regulation studies at the Center for Monetary and Financial Alternatives for the Cato Institute; and actor Ben McKenzie Schenkkan. More witnesses may be called at a later point in time.