Charlie Munger says crypto is a bad combo of fraud and delusion — 'good for kidnappers'

Berkshire Hathaway Vice Chairman Charlie Munger, a longtime cryptocurrency skeptic, said integer currencies are a malicious operation of fraud and delusion.

"This is simply a very, precise atrocious thing. The state did not request a currency that was bully for kidnappers," Munger said successful an interrogation with CNBC's Becky Quick. "There are radical who deliberation they've got to beryllium connected each woody that's hot. I deliberation that's wholly crazy. They don't attraction whether it's kid prostitution oregon bitcoin."

The 98-year-old investor's remark came aft a chaotic week for the industry. FTX filed for Chapter 11 bankruptcy extortion after concerns implicit the company's fiscal wellness resulted successful a tally connected the speech and a plunge successful the worth of its autochthonal FTT token. Binance had backed retired of a woody acquiring FTX aft reports of mishandled lawsuit funds and alleged U.S. authorities investigations into FTX.

"You are seeing a batch of delusion. Partly fraud and partially delusion. That's a atrocious combination," Munger said.

The terms of bitcoin, the world' largest cryptocurrency, has fallen much than 60% this twelvemonth to commercialized beneath $17,000, according to Coin Metrics.

"Good ideas, carried to wretched excess, go atrocious ideas," Munger said. "Nobody's gonna accidental I got immoderate s*** that I privation to merchantability you. They accidental – it's blockchain!"

Listen to the afloat interrogation with Munger connected the Squawk Pod podcast.