American television personality and legendary stockbroker Jim Cramer says the cryptocurrency market is a “huge scam.” In his new statements, he gives place to why he is moving away from crypto.
Jim Cramer announces he is selling these two cryptocurrencies
The legendary stockbroker bought a farm last year with profits from crypto investments. A large part of their investments were focused on Ethereum. Cramer is now questioning whether the entire market is just one big ‘fraud’. Last year, he took the first step to get away from the market by selling his Bitcoins. He later announced that he had bought Ethereum with some of that money. He based his reasoning on investing in ETH because people use Ethereum to transact. However, he sold his Ethereum position after learning that his bank was unwilling to accept it. Cramer is currently looking to move away from crypto entirely.
Cramer shared that he talked to executives at his bank to keep Ethereum. However, he explained that although he has been a customer for 30 years, the bank does not accept this. “That was a great reason to sell,” he said on CNBC’s “Squawk On The Street” on Tuesday.
“It’s never too late to sell”
Bitcoin and Ethereum hit two-year lows with the bankruptcy of FTX. Accompanied by strong winds blowing throughout the year, they lost around 70% of their ATH levels. Cramer, on the other hand, says, “I think it was a huge scam,” as a reason to move away from the market.
Sam Bankman-Fried, founder and former CEO of FTX, took to Twitter on Sunday that he plans to testify before the US Financial Services Committee once he has finished “learning and reviewing” the events that led to FTX’s collapse. Responding to Bankman-Fried on Monday, Committee Chair Representative Maxine Waters said recent media interviews showed that her knowledge was “sufficient to testify” before the congressional committee. Cramer reminds crypto investors that it is never too late to sell.
Sam Bankman-Fried hires defense attorney as US authorities investigate FTX
In the latest developments, which we quoted as Kriptokoin.com, it was revealed that former CEO SBF hired Mark Cohen, a former federal prosecutor, to act as his defense attorney. According to reports from December 6, Bankman-Fried spokesman Mark Botnick said that the former FTX CEO is holding Cohen amid a string of civil lawsuits from investors in the cryptocurrency exchange and investigations by regulators.
Meanwhile, lawmakers in the US Senate and House of Representatives announced separate hearings to investigate the collapse. These will explore the potential impact on investors and traditional markets, and the bankruptcy process. Additionally, the House Financial Services Committee leadership urged Bankman-Fried to speak at the hearing on FTX on Dec. But the former CEO suggested that he would testify only after “learning and reviewing what happened.” It is not yet clear whether he will speak from the Bahamas in person or from afar.
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