The country is falling apart because of crypto’s role in ransomware, said John Reed Stark, former SEC chief of internet enforcement, when he appeared Thursday on CNBC’s “Squawk On The Street.”
Ransomware is a form of malware that encrypts data so a user or organization is unable to access it unless a ransom is paid.
Ransomware attackers are collecting ransoms in Bitcoin (CRYPTO:BTC) because there isn’t a way for them to get caught, Stark said.
There is no utility in Bitcoin or other cryptocurrencies, he said, adding the only reason ransomware succeeds is through crypto.
The main reason people own crypto is they think someone else will buy it at a higher price, Stark said.
Stark told CNBC he is yet to find a benefit that outweighs the risk cryptocurrency poses to society.
Mark Cuban took to Twitter to comment on the CNBC interview.
Stark has “absolutely no understanding of crypto,” Cuban said.
Watching @cnbc and the guest who used to work at the SEC has absolutely no understanding of crypto. Says there is zero utility. One certainty is crypto will continue to positively impact business more than the SEC. I’m happy to educate him on the applications we are developing
— Mark Cuban (@mcuban) June 3, 2021
Cuban continued by listing cryptocurrency use-cases:
“Weather insurance. Money transfer. Provenance for digital files. Marketplace efficiency for digital content. Personal banking. Prediction markets. Non-fractionalized banking. Structured financial products. Fractionalization of assets. Gaming rewards. Soon ticketing.”
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BTC Price Action: Bitcoin is up 33.67% year-to-date. At last check Thursday, it was up 3.32% at $38,829.90.