Charlie Munger Blasts Crypto as ‘Partly Fraud and Partly Delusion’ After FTX Meltdown
Charlie Munger Blasts Crypto as ‘Partly Fraud and Partly Delusion’ After FTX Meltdown

By Naveen Athrappully

Charlie Munger, vice chairman of Berkshire Hathaway, has issued scathing comments on the crypto industry after one of the globally leading exchanges FTX collapsed last week.

“It’s partly fraud and partly delusion,” Munger said on CNBC Tuesday. “That’s a bad combination. I don’t like either fraud or delusion. And the delusion may be more extreme than the fraud.”

FTX filed for Chapter 11 bankruptcy last week after concerns about the company’s balance sheet triggered a mass withdrawal of funds by depositors, pushing the firm into a liquidity crisis.

Though the company’s filing had initially estimated that there would be 100,000 creditors affected by the collapse, the firm upped the estimate to more than one million in a later filing.

Crypto hedge funds like Ikigai, which maintained a major portion of its assets on FTX, are now in an uncertain position.

Munger has long been a critic of cryptocurrencies and had earlier called for banning them. Back in April during a shareholder meeting, the renowned investor said that he tries to avoid things that are “stupid and evil,” pointing to Bitcoin, the largest cryptocurrency in the world, as fitting all criteria.

Warren Buffet, Legislation

Chairman Warren Buffet, who controls Berkshire Hathaway, is also a strong critic of cryptocurrencies. During the April shareholder meeting, Buffet pointed out that cryptos are not a productive asset as it does not produce anything.

He cited investing in apartments and farms as far superior to betting money on cryptos. “The apartments are going to produce rent and the farms are going to produce food,” Buffet said.

As of Nov. 16, the global cryptocurrency market cap was just over $883 billion, which is down by 68.23 percent from a year ago. In November last year, the market cap had hit a peak of nearly $2.9 trillion.

In a tweet on Nov. 12, Sen. Pat Toomey (R-Pa.) criticized the failure of Congress to pass legislation establishing “regulatory guardrails” in crypto trading for creating legal uncertainty in the industry.

He also blamed the “complete hostility and lack of transparency” by the U.S. Securities and Exchange Commission as another factor.

“These failures have driven crypto development to foreign jurisdictions that have little or insufficient regulation. We’re now seeing the consequences in the failure of @FTX_Official,” he said.

If a “sensible, legislatively authorized” framework for digital assets existed in the country, the impact of FTX’s bankruptcy filing on Americans might have been mitigated, Toomey insisted.

Affiliate News Feeds

  • Reuters
  • Washington Examiner
  • The Federalist
  • The Epoch Times
  • The Guardian
  • The Gateway Pundit
  • Judicial Watch

By Patricia Tolson A new survey reveals that the majority of Americans do not trust the integrity of America’s elections. According to a poll conducted among likely General Election voters between Nov. 16–20… [...]

By Louise Chambers When her neighbor, a farmer, fell ill suddenly, a Minnesota teen volunteered to help him tend the land. The farmer was beyond grateful for the support, and the teen… [...]

EXCLUSIVE — U.S. air marshals are planning to stage an open rebellion against the Biden administration over a plan that would strip 99% of commercial flights from federal protection as… [...]

Attorneys general from 18 states are calling on UPS and FedEx to clarify their policies on shipping guns amid concerns about the companies being able to track gun owners without… [...]

Politico should have done far better than stating opinion as fact and blithely ignoring concerns that medical experts have raised. [...]

What the Rhine case reveals is the danger that a partnership between an equally politicized federal government and Big Tech presents to disfavored groups.  [...]

The U.S. Senate on Nov. 29 approved the “Respect for Marriage Act,” with a dozen Republicans crossing the aisle to vote yes. See below how each senator voted for the… [...]

Former White House chief of staff Mark Meadows must testify to a grand jury in Georgia that’s investigating possible election-related misconduct, South Carolina’s top court ruled on Nov. 29. “We… [...]

Guardian unpicks complex web of investment firms, wealth funds and tax haven-based businesses that own most of sectorEngland’s water: the world’s piggy bankCan global water investors be held to account?England’s… [...]

Household member apologises after Ngozi Fulani questioned over where her ‘people’ came fromA member of the Buckingham Palace household has resigned and apologised after a black guest at a reception… [...]

According to observations and signed affidavits, three poll workers and an election marshal who worked at the same Maricopa County voting center on Election Day witnessed concerning issues and irregularities… [...]

A Missouri man who murdered a police officer in 2005 has been executed for his crime. Kevin Johnson, 37, killed Kirkwood Police Sgt. William McEntee when he was called to… [...]

Though years ago India passed a sweeping law giving transgender people rights—and prohibiting discrimination in education, employment, and healthcare—the Biden administration is spending American taxpayer dollars to counter stigma and… [...]

(Washington, DC) – Judicial Watch announced today that it filed a Freedom of Information Act (FOIA) lawsuit against the Department of Homeland Security (DHS) for all communications between the Secret… [...]

NH Politician

NH POLITICIAN is owned and operated by USNN World News Corporation, a New Hampshire based media company specializing in the collection, publication and distribution of public opinion information, local,...