Mad Money host Jim Cramer has warned investors against using cryptocurrency exchange Binance, stating that the cryptocurrency trading platform is “too incomplete.” Cramer cited former regulator Timothy Massad, who previously served as chairman of the US Commodity Futures Trading Commission (CFTC). The regulatory agency recently took action against Binance and its CEO, Changpeng Zhao (CZ).
Jim Cramer Warns About Binance
CNBC’s Mad Money host Jim Cramer warned investors against using cryptocurrency exchange Binance on Friday. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website. He tweeted:
After hearing Tim Massad on the show last night (former CFTC head), I would not do business with Binance. Too sketchy.
Massad, who served as chairman of the US Commodity Futures Trading Commission (CFTC) from 2014 to 2017, has been an advocate for stricter cryptocurrency regulations for years. Explaining the charges the CFTC brought against Binance and its CEO, Changpeng Zhao (CZ), Massad described that the crypto trading platform engaged in a “systematic effort to cultivate business in the US.” He added that Binance allegedly helped “Americans circumvent restrictions” and failed to comply with know-your-customer (KYC) rules.
Many people on social media are entertained by Cramer’s tweet. Some ridiculed the Mad Money host for frequently making wrong predictions and took his negative comment on Binance as a bullish sign for the cryptocurrency exchange. Before the collapse of Silicon Valley Bank and Signature Bank, Cramer recommended that investors buy shares in the two banks.
This was not the first time Cramer had warned against Binance. In December of last year, he said that he would trust his money on fantasy sports betting platform Draftkings more than Binance.
Cramer has also been warning investors about investing in cryptocurrencies. Earlier this month, when the price of BTC skyrocketed, the Mad Money host said he would sell his bitcoin “right into this rally.” He strongly believes that cryptocurrency prices are being manipulated. Before the BTC rally, advised investors to get out of crypto. Cramer also expects the US Securities and Exchange Commission (SEC) to “do a roundup” of non-compliant crypto companies.
Do you agree with Mad Money host Jim Cramer that Binance is “too sketchy”? Let us know in the comments section.
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