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Why the Wolf of Wall Street says Bitcoin is a scam

Smartphone with Bitcoin symbol on-screen among piles of golden Bitcoins. Blockchain transfers concept. 3D rendering  (Photo credit: Wit Olszewski /

The infamous Wall Street broker, who entered the financial services three decades ago and is known as the king of excess says Bitcoin is a “huge scam.” Who would know better about a financial scam than Jordan Belfort, the man who served time in federal prison for running a $100M boiler-room stock manipulation scheme.

“Promoters are perpetuating a massive scam of the highest order on everyone,” he tells the Financial Times on Friday, Dec. 15, 2017. “Probably 85 percent of people out there don’t have bad intentions but the problem is, if 5 or 10 percent are trying to scam you.”

The cryptocurrency rose more than 1,700 percent since the start of the year. On Friday, it reached as high as $17,900 on the Luxembourg-based Bitstamp exchange.

Belfort thinks Bitcoin’s value will rise in the short term before crashing.

Bitcoin has really risen 80 percent this December, making this the best month in percentage terms since December 2013.

“I think it’s a huge danger right now that people are looking at this as the next great thing, it’s a bubble for sure,” he tells CNN.