As crypto lawsuits pile up, Cramer says get out while you can

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On Tuesday, CNBC’s Jim Cramer discussed market manipulation and advised investors to get their money out of cryptocurrency while they still can.

“I want you to be able to protect yourself from scams that are designed to trick you into taking your money away,” Cramer said. “I consider it my job now, because how can we make money together if you’re just going to lose it to these scams and schemes?”

Cramer detailed the recent mini-banking crisis that destroyed entities such as Silvergate, Silicon Valley Bank, Signature Bank and First Republic, all of which failed for a myriad of reasons. However, following their demise, hedge funds made a lot of money by selling short.

“It was actually child’s play for the shorts. [Hedge funds] made tons of money,” Cramer said. “Unfortunately, they have also defeated the shareholders of the regional banks, and they are all going to make access to credit much more difficult, even if they have enriched their wealthy customers by doing so.

But unlike banks, Cramer said, at this point he thinks cryptocurrencies are mostly scams. He described crypto platforms as “poppycock” and sad that if you always have your money locked away with them, you’re just a fool.

“Now what do you do if you get involved in these kinds of outfits? The same thing you should have done with SPACs or IPOs that were bad or meme stocks a year and a half ago: get out now,” Cramer said. “Go buy some treasuries. I’m not kidding. Just do that.”

Cramer echoed SEC Chairman Gary Gensler, pointing out that platforms like Binance are as legal as the Wild West and pointing out that it’s possible to lose it all because there is no regulation.

“Sometimes you get stocks that are manipulated down like regional banks, and then you get assets that are manipulated up on fake exchanges, like a huge part of the crypto ecosystem. Both are an affront” , said Cramer. “You’ll never get any credibility on Mad Money when you do this stuff to our viewers. I’m after you, and I’m not done. I’m starting.”

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