Berkshire Hathaway Vice Chairman Charlie Munger, a longtime cryptocurrency skeptic, mentioned digital currencies are a malicious mixture of fraud and delusion.

“This is a very, very bad thing. The country did not need a currency that was good for kidnappers,” Munger mentioned in an interview with CNBC’s Becky Quick. “There are people who think they’ve got to be on every deal that’s hot. I think that’s totally crazy. They don’t care whether it’s child prostitution or bitcoin.”

The 98-year-old investor’s remark got here after a wild week for the business. FTX filed for Chapter 11 chapter safety after considerations over the corporate’s monetary well being resulted in a run on the alternate and a plunge within the worth of its native FTT token. Binance had backed out of a deal buying FTX after experiences of mishandled buyer funds and alleged U.S. authorities investigations into FTX.

“You are seeing a lot of delusion. Partly fraud and partly delusion. That’s a bad combination,” Munger mentioned.

The value of bitcoin, the world’ largest cryptocurrency, has fallen greater than 60% this 12 months to commerce beneath $17,000, based on Coin Metrics.

“Good ideas, carried to wretched excess, become bad ideas,” Munger mentioned. “Nobody’s gonna say I got some s*** that I want to sell you. They say – it’s blockchain!”

Listen to the total interview with Munger on the Squawk Pod podcast.

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