BITCOIN and other cryptos are “pump-and-dump” scams, according to the man who made more than $250 million in similar scams. Beginning of dialog window. Escape will cancel and close the window.

Blvk Temple Tattoo studio owner Matty Currie explains how to use Cairns’ first Bitcoin ATM. An investor watches cryptocurrency prices. Picture: Dave Hunt/AAPSource:AAP CRYPTOCURRENCIES are “pump-and-dump” schemes being promoted by “scamsters”, according to the real-life Wolf of Wall Street who made his money swindling investors in pump-and-dump schemes.

In an interview with The Street, Jordan Belfort predicted the crypto craze would come to a bad end and millennial investors would be “left holding the bag”. “They’re all [pump-and-dump schemes],” he said.

“At this point in time the money’s been made in bitcoin already. If you’re in the crypto game right now and you’re looking to make money — the guys that are really committing the fraud — the only way to do it is, you need to issue a new currency at the bottom and ride it up.” The founder of stockbroker Stratton Oakmont, whose memoir was adapted into the 2013 biopic starring Leonardo DiCaprio, defrauded investors out of an estimated $US200 million through “pump-and-dump” schemes.

They involve buying and then artificially boosting the price of cheap “penny stocks” through misleading statements before cashing out. Belfort, now a motivational speaker, served 22 months of a four-year sentence after being convicted of securities fraud and money laundering in 1999. Read more from…

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