CNBC host Jim Cramer said he sold most of his bitcoin holdings amid various concerns surrounding the cryptocurrency.
The Mad Money host said this on Monday, citing Chinese government crackdown and the use Bitcoin in ransomware attacks.
“Sold almost all of my bitcoin Don’t need it,” Cramer said during Monday’s Squawk on the Street.
While refereeing to Bitcoin Value he said “I’m saying that this is not going up because of structural reasons.”
Cramer’s comment comes two months after he disclosed that he used profit from Bitcoin to pay off his mortgage.
Cramer however did not reveal his Bitcoin holdings, but had said he purchased the digital currency when it was valued at $12,000.
Bitcoin reached all time of $65,000 in April, and has fallen almost 50% from it’s highest point. It is trading at $31,667.5 at the time of this report.
“When the [People’s Republic of China] goes after something, they tend to have their way,” Cramer said. “It’s not a democracy. It’s a dictatorship.” He continued: “I think that they believe it’s a direct threat to the regime because what it is, is a system that’s outside their control.”
“In our country, I think it’s outside of our control when it comes to ransomware, and I doubt that Colonial is the first company to pay ransomware. I think they’re the first that almost shutdown the East Coast,” Cramer said. “I think the Justice Department and the FBI and the Federal Reserve and Treasury could coalesce and say, ‘OK guys, if you pay ransomware, we’re going to go after you.”
Colonial Pipeline had paid a $5 million ransom in bitcoin to hackers. U.S. law enforcement was able to recover $2.3 million of that payment.
Another ransomware which targeted Brazil’s JBS – the world’s largest beef supplier saw the company paying $11 million to the hackers.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.