Popular U.S. host across the Atlantic of Mad Money, Jim Cramer, says he expects the U.S. Securities and Exchange Commission (SEC) to raid non-compliant crypto companies. Expecting the SEC to “will go through everything with a fine-tooth comb“, Cramer urges investors to “exit” from the crypto now.
Jim Cramer’s latest warnings about crypto-currencies.
CNBC’s Mad Money host Jim Cramer is back with new warnings for crypto-currency investors. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy site.
Following a joint statement on crypto-currency risks by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), Jim Cramer said on CNBC Wednesday:
I think these statements are the beginning of what I’ve been calling for, which is that the SEC is going to go through all the ones that have been released. [crypto firms] That are not in compliance.
Citing John Stark, who was an attorney for more than 18 years in the SEC’s enforcement division, Cramer noted that Stark “is now calling for a sweep.“The Mad Money host pointed out:
He said the SEC is going to sweep everything up, and that’s why I’m telling everybody: get out of this.
“I see that a lot of people think, like John Stark, that this is just a giant scam“, continued Jim Cramer. He added that he expects former FTX CEO Sam Bankman-Fried (SBF) to be a major part of the SEC’s raid.
Jim Cramer clarified:
I’m not calling for a collapse of crypto. I am calling for the collapse of the people involved in the Ponzi scheme.
Despite the warning signs, Jim Cramer explained that “people are driving up prices” of crypto-currencies. He went on to warn investors to get their money out of crypto-currencies while they can.
The Mad Money host used to invest in bitcoin, ether and non-fungible tokens (NFTs), but he sold all of his crypto holdings last year. He has advised investors to avoid investing in speculative assets, including crypto, as the Federal Reserve continues to tighten the economy. Earlier this month, he advised investors to get out of crypto, stressing that it’s never too late to get out of “an awful position.” He also stated that he wouldn’t touch crypto in a million years.
As for why the bitcoin price is so resilient at the high $16K level, Cramer said Friday, “Well, I’ll tell you what Stark said. Because it’s a fake and a scam“. The Mad Money host concluded that crypto-currency prices are “supported by people who want them to be supported, and that’s all there is.“