Shark Tank star and investor Aaron O'Leary warns that unregulated password exchanges will fall to the ground again like post-FTX development dominoes, and there will be more "crashes" in the future.

The former spokesman and maintainer of the failed FTX exchange told Kitco network anchor Peter Lin in an interview on January 17 that FTX is only one of a long list of "unregulated exchanges" that are likely to fail:

If you ask me, will I fall to zero again? There must be nothing wrong with it. 100% of things will happen, and it will happen again and again.

Unregulated exchanges are those that refuse to be audited on time, are not regulated by the registration of the Securities Federation, and are not subject to similar standards of traditional stock exchanges and brokerage companies.

"all these exchanges, all unregulated exchanges, now have a lot of capital outflows. Shrewd investors have long understood this ridicule. They saw what happened to FTX, and they didn't sit in their seats and wait for their statements.

The Shark Tank artist then issued a stern warning against the so-called unregulated password exchange.

"if you are unwilling to accept the audit, [.] You don't have an audit, you don't want to be completely transparent, you don't want to disclose the right to use, why do you keep the organization's assets? Of course, I wouldn't do that.

The collapse of FTX in November last year led to a strong recommendation on the streets to require password exchanges to improve clarity. Within weeks, five intermediary exchanges conducted inventory verification audits, and many others announced the same plan.

However, some observers, including a senior SEC official, warned that risk reserves proved to be simply not a true reflection of a company's performance, and asked investors to be "very careful" with the statement.

Some auditors, such as Mazars, seem to have affected their strong support for data encryption companies. In December last year, the company cancelled the audit of Binance, the password exchange, and it is reported that it completely suspended the audit of reserve verification of password companies.

Other auditors, such as Giorgio Armanino, auditor of FTX, are also said to have stopped working with password exchanges such as OKX and Gate.io. O'Leary commented:

Frankly, you know, because of the unregulated nature of jeans, you can't find an auditor who needs to touch it these days. It will all be over, yes, there will be more zeros.

Earlier that month, Marco Cuban, another great white shark heavy tank host in Ollie, told the Wall Street Journal that password clearance on centralized exchanges was undoubtedly the main reason for the next password "implosion."

According to a December report by China's Bureau of Economic Research, 70% of the trading volume of unregulated exchanges is money laundering.

Although they vary, O'Leary shows that he is doubling his investment in encryption algorithms, especially BTC.

"I've been going into the password market these days. As long as BTC falls below $17000, I will also increase our trading position there.

He added: "encryption algorithms are becoming more and more interesting, and as long as we finally start to see those responsible for regulation come into full play, I think that's a good thing in the long run."