The Wolf of Wall Street, Jordan Belfort, in an interview with Yahoo Finance on November 21, said that he once encountered a hack that cost him roughly $300,000 in digital currency. Belfort did say that he now keeps his money in a cold storage facility rather than the crypto wallets provided by the exchange as a result of the incident.
“I don’t have any of my money in any crypto on exchanges. It’s all off in a cold storage wallet, so to speak, with Ledger. So I got hacked, actually. I lost about $300,000 on MetaMask last year. This is a very, very, very tough industry right now because it’s really literally like the Wild West,” Belfort said.
Bitcoin needs more regulation
Belfort also pointed out that more rules and regulations are required in order to reduce similar incidents. He has asserted that a regulated environment would probably be beneficial for Bitcoin (BTC).
“It’s in desperate need of regulation, desperate need of the SEC or somebody to step in here and bring at least some level of order to the chaos. Even after they do that, there will still be a fraud. There always is in every market,” he said.
Belfort’s views on Sam Bankman-Fried
Belfort, previously expressed his opinion on what he believes took place behind closed doors at the troubled cryptocurrency exchange FTX. According to Belfort in a recent Fox Business interview, it is incorrect to think that FTX is a cryptocurrency exchange.
“He was using it as his own personal piggy bank, Sam Bankman-Fried. People deposited their money in FTX because they want to trade, like any brokerage firm,” he said.
In response to the question of whether FTX will ever refund investors’ money, Belfort asserts that it is doubtful. He has little faith that a large sum of money can be recovered from this situation.
“If you’re leveraging the way they were leveraging, it’s really easy to take these huge losses. I don’t think they were very good traders, by the way.”
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