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Renowned CNBC host Jim Cramer has recently sounded the alarm on the growing number of cryptocurrency-related lawsuits, urging investors to withdraw their funds before it’s too late. Cramer, known for his insightful market analysis, expressed concerns about market manipulation and the prevalence of scams in the crypto space.
Cramer acknowledged his responsibility to protect investors from fraudulent schemes, stating, “How can we make money together if you’re just going to lose it in these scams and schemes?” He drew attention to the recent banking crisis that impacted institutions such as Silvergate, Silicon Valley Bank, Signature Bank, and First Republic. While these banks faltered for various reasons, hedge funds were able to profit handsomely by shorting their stocks.
According to Cramer, shorts made a killing, leaving the regional banks’ shareholders in dire straits. Moreover, he emphasized the adverse consequences of these actions, making it increasingly difficult for credit to flow while enriching wealthy clients.
Drawing a sharp distinction between traditional banking institutions and cryptocurrencies, Cramer went on to claim that most cryptocurrencies are, in fact, scams. He expressed his disillusionment with crypto platforms, referring to them as “poppycock.” In his view, individuals who still have their funds locked in these platforms are simply naive.
.@jimcramer calls SECGov's lawsuit against #Binance 'devastating'https://t.co/Ib4MufeFGu
— U.Today (@Utoday_en) June 6, 2023
So, what does Cramer recommend for those entangled in these schemes? He advises taking a similar course of action as with the ill-fated SPACs, IPOs, or meme stocks of the past: exit immediately. Cramer suggests redirecting investments towards safer options like Treasury bills, highlighting the lack of regulations and the potential for total loss in the unregulated crypto landscape.
Cramer echoed the sentiments of SEC Chair Gary Gensler, who likened platforms such as Binance to the unruly wild west. He stressed the urgent need for regulations to safeguard investors, emphasizing the detrimental impact of manipulated stocks and fraudulent exchanges on the credibility of financial markets.
Cramer made his intentions clear, vowing to hold those responsible for such activities accountable. He pledged his dedication to protecting viewers and investors, stating, “You’re never going to get any credence on Mad Money when you do this stuff to our viewers. I am after you, and I’m not done. I’m getting started.”
As lawsuits against cryptocurrency entities continue to mount, investors should heed the warnings from experts like Cramer.
