Jim Cramer, the host of CNBC's Mad Money show, has warned investors against using the cryptocurrency exchange Binance, stating that it is "way too sketchy." Cramer cited former regulator Timothy Massad, who recently served as chairman of the U.S. Commodity Futures Trading Commission (CFTC). The regulatory agency has taken action against Binance and its CEO, Changpeng Zhao (CZ). Massad described that the crypto trading platform engaged in a "systematic effort to cultivate U.S. business" and allegedly helped "U.S. persons get around restrictions" while failing to comply with know-your-customer (KYC) regulations.
Cramer's negative comment about Binance has been met with amusement by many people on social media, who have criticized the Mad Money host for frequently making wrong predictions. However, this is not the first time Cramer has cautioned against using Binance. In December 2022, he said he would trust his money more in fantasy sports betting platform Draftkings than he would Binance.
Cramer has also been warning investors about investing in cryptocurrencies. Earlier this month, when the price of BTC soared, he said he would sell his bitcoin "right into this rally," believing that crypto prices are being manipulated up. Prior to the BTC rally, he advised investors to get out of the crypto market. Cramer also expects the U.S. Securities and Exchange Commission (SEC) to "do a roundup" of non-compliant crypto firms.
Investors must always conduct thorough research before making investment decisions, especially in the cryptocurrency market. The crypto market is highly volatile and risky, and investors should consider the potential risks involved before investing their hard-earned money.
