Jim Cramer Labels Binance A 'Sham' Amid SEC Lawsuit, Says Crypto Investors Now Have To 'Work In Overdrive'

Jim Cramer, host of CNBC’s Mad Money, reiterated the caution he had previously expressed about the crypto market including Bitcoin BTC/USD, which he considers a “strange animal.”

What Happened: According to Cramer, the SEC’s case shines a light on the systemic issues within the crypto industry. 

He stated that "those who toil daily to prop up crypto coins will have to work in overdrive", given Binance’s current situation.

Cramer’s warning comes after SEC Chair Gary Gensler accused Zhao and Binance of engaging in a “web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”

For context, the Securities and Exchange Commission (SEC) on Monday filed charges against Binance, one of the largest cryptocurrency exchanges, and its founder Changpeng Zhao for alleged securities violations. This charge dealt a devastating blow to the crypto industry as a whole, causing major cryptocurrencies to experience a decline on Monday.

See More: A Stay At The Floating Palace From James Bond's ‘Octopussy’

Why It Matters: Cramer said that "the Binance brief by the SEC is so devastating that the defenders of this company will have to do some serious soul-searching and expend real capital to maintain what looks to be a sham."

Cramer’s outlook on crypto has been colored by the skepticism he’s expressed in the past. He has earlier warned investors about the volatility of the market and had advised them to sell their holdings.

Price Action: At the time of writing, BTC was trading at $25,780.80, down 4.12%, in the last 24 hours, according to Benzinga Pro.

Read Next: Bitcoin, Ethereum, Dogecoin Tumble After SEC Lawsuit: Analyst Says Binance’s Success Is Key To Apex Crypto’s Survival