CNBC Mad Money host Jim Cramer didn’t mince words on Tuesday criticizing crypto exchanges Coinbase Global Inc COIN and Binance. Highlighting the regulatory scrutiny these platforms are under, he discussed the potential impact on the broader crypto ecosystem.

What Happened: Cramer expressed his concerns regarding Coinbase and Binance, terming the situation as a “massive fraud.” He described the aggressive approach Coinbase had taken to sidestep regulation, “Coinbase, I think, they just bulldozed their way in.”

Referring to the SEC’s action against Coinbase, Cramer said the department just wants the crypto exchange to adhere to securities regulations. He emphasized that, in his view, the SEC wasn’t seeking to close Coinbase but rather, “they want them to play ball.”

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Why It Matters: Discussing the potential implications, Cramer stated, “This is a sweep, that if you’re Binance, what they’re saying is we’re going to shut you down.” 

He underscored the severity of Binance’s situation, noting, “[Brian] Armstrong was not charged, the head of Coinbase, but [for] CZ, the head of Binance, it’s going to be a hard day.”

Cramer added Binance “did wash trades constantly to make it so that they were bigger than anyone realized, when they weren’t.” 

Responding to the idea that the SEC’s actions are an existential threat to the crypto ecosystem, Cramer said, “Absolutely,” adding that the regulatory scrutiny could have far-reaching consequences. He went on to draw attention to specific cryptocurrencies that have been frequently mentioned in discussions about securities, such as Solana SOL/USD.

Cramer labeled some crypto assets as “Ponzi schemes,” saying, “When you look at all these different so-called coins, they were done to manipulate.” He expressed concerns about retail investors who might be caught in these schemes, noting that a lot of viewers have “trafficked in these things.”

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