Mad Money host Jim Cramer warned investors against using cryptocurrency exchange Binance, saying the crypto trading platform is “too sketchy.” Cramer cited former regulator Timothy Massad, who previously served as chairman of the U.S. Commodity Futures Trading Commission (CFTC). The regulator has recently taken action against Binance and its CEO Changpeng Zhao (CZ).
Jim Cramer warns about Binance
Jim Cramer, host of CNBC’s “Mad Money” show, cautioned investors Friday about using the cryptocurrency exchange Binance. Cramer is a former hedge fund manager and co-founder of Thestreet.com, a financial news and literacy website. He tweeted:
After listening to Tim Massad (former head of the CFTC) on the show last night, I would never do business with Binance. Too sketchy.
Massad, who served as chairman of the U.S. Commodity Futures Trading Commission (CFTC) from 2014 to 2017, has long been an advocate for tighter cryptocurrency regulation; in regard to charges filed by the CFTC against Binance and its CEO, Changpeng Zhao (CZ) Massadexplainedthat the crypto trading platform engaged in an “organized effort to foster U.S. business.” He added that Binance allegedly helped “Americans circumvent restrictions” and failed to comply with know-your-customer (KYC) regulations.
On social media, many found Cramer’s tweet amusing, scoffing at the Mad Money host’s frequent false predictions, while others took his negative comments about Binance as a bull signal for crypto exchanges. Before the collapse of Silicon Valley Bank and Signature Bank, Cramer had encouraged investors to buy shares of the two banks.
This is not the first time Cramer has cautioned against Binance. Last December, he said he would trust his money to Draftkings, a fantasy sports betting platform, over Binance.
Cramer has also warned investors about investing in cryptocurrencies. Earlier this month, when the price ofBTCsoared, the Mad Money host said he would “sell right into this rally” for his bitcoins. He firmly believes that the price of crypto is being manipulated to go up.34} Before the BTCrally, he advised investors to get out of crypto.Cramer also expects the U.S. Securities and Exchange Commission (SEC) to “round up” noncompliant crypto companies.
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