- Nouriel Roubini called Binance founder Changpeng Zhao a "walking time bomb" on Wednesday.
- The economist called crypto "totally corrupt" at a CNBC event in Abu Dhabi.
- Roubini also slammed Shark Tank investor Kevin O'Leary, who he called "a paid hack for FTX".
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Nouriel Roubini says the cryptocurrency ecosystem is 'totally corrupt'
(Kitco News) - Famed economist Nouriel Roubini is waging a Twitter war against the global crypto economy as it faces a massive liquidity crisis that has brought down major exchanges and players.
This past week the outspoken professor at the NYU Stern School of Business and CEO of Roubini Macro Associates has made headlines describing cryptocurrencies as a "corrupt cesspool." But he took his battle to new highs Wednesday, saying it's an "ecosystem that is totally corrupt" in a live panel discussion at the Abu Dhabi Finance Week.
In a direct attack on Binance CEO Changpeng Zhao, also known as CZ, Roubini said that he doesn't know why the crypto mogul has been allowed to live and operate in the UAE.
He noted that Zhao's cryptocurrency exchange has been banned in the U.K. by British Regulators, and is now under investigation by U.S. officials for processing nearly $8 billion in funds from Iran, skirting U.S. sanctions that have been in place since 2018.
"He is a walking time bomb and he should be kicked out of this country and not be allowed to operate," he said.
The harsh comments about the crypto economy come as Roubini issues a stark warning for the global economy, saying that it is headed towards a decade-long stagflationary debt crisis.
"When the recession comes, it will not be short and shallow but long and severe. Not only are we facing persistent short- and medium-term negative supply shocks, but we are also heading into the mother of all debt crises, owing to soaring private and public debt ratios over the last few decades," Roubini wrote in a recent commentary for Project Syndicate.
"If we don't stop the multi-track slow-motion train wreck that is threatening the global economy and our planet at large, we will be lucky to have only a repeat of the stagflationary 1970s," he said.
Along with a looming global economic crisis, Roubini also said that the world faces more geopolitical instability and the potential for more international conflicts and environmental threats due to climate change.
In a world that faces growing mega-threats, Roubini has consistently said that people need to hold tangible assets to protect themselves.
"Investors will need to find assets to hedge against inflation, political and geopolitical risks, and environmental damage: these include short-term government bonds and inflation-indexed bonds, gold and other precious metals, and real estate that is resilient to environmental damage," he wrote.
Last week, Roubini also launched his latest book: Megathreats: Ten Dangerous Trends That Imperil Our Future, And How To Survive Them.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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Nouriel Roubini slams Binance boss CZ as a 'walking time bomb' and says crypto is totally corrupt
Nouriel Roubini described Binance boss Changpeng Zhao as a "walking time bomb" Wednesday in a passionate rant about corruption in the crypto industry.
The economistāwho's been dubbed "Doctor Doom" for his grim predictionsāsaid that the recent collapse of major exchange FTX shows that crypto needs to be wary of bad actors, and included Zhao, better known by his initials CZ, within that group.
"There are seven Cs of crypto," Roubini told CNBC Middle East Wednesday. "Concealed, corrupt, crooks, criminals, con men, carnival barkers and finally, CZ."
"Unfortunately this is an ecosystem that is totally corrupt," Roubini added. "Unfortunately it is and I think the lesson of the last few weeks is that these people should be out of here."
Speaking at the Abu Dhabi Finance Week, Roubini questioned why Binance is allowed to operate in the United Arab Emirates.
The exchange was banned from the UK by the Financial Conduct Authority last year, and is also under investigation by US authorities over claims it helped Iranian firms to launder money.
"I can't believe that CZ and Binance has a license to operate in the UAE," Roubini said. "The regulators should be thinking carefully," he added. "That's a walking time bomb."
Roubini also criticized "Shark Tank" investor and frequent CNBC guest Kevin O'Leary, who was a spokesperson and early investor for the now-bankrupt exchange.
"Kevin O'Leary is a paid hack for FTX," he said. "I hope that CNBC is going to get rid of him."
Neither Binance nor Kevin O'Leary immediately responded to Insider's requests for comment.
Roubini is a longtime crypto critic who has repeatedly slammed the industry, including after FTX announced it was exploring a rescue deal with Binance after suffering a solvency crisis last week.
"First FTX bails out collapsing crypto Ponzi scams. Now FTX is collapsing & being bailed out by Binance," Roubini said in a November 9 tweet.
"But who will bail out Binance when that crappy house of cards collapses? Crypto is Mother Of All Ponzi Schemes!" he added.
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