Citron Founder Andrew Left Blasts Crypto as ‘Complete Fraud’

First, Citron Research founder Andrew Left came for GameStop, saying the stock of the video game retailer wasn’t worth the price. Now, he’s taking on the cryptocurrency sector, saying at a New York conference on Monday (July 11) that the digital assets are nothing but a “fraud,” according to Reuters.

Left, one of the world’s best-known short sellers, told the audience in response to a question about fraud in the financial markets, “I think crypto is just complete fraud, over and over and over,” without revealing if he has invested in the space.

Last year, Left said Citron Research was stepping away from its original focus on publishing research that highlighted companies’ shortcomings to instead writing about companies he considered worthy of his own financial investment, the report says. That announcement came shortly after Left’s comments regarding GameStop and its soaring stock price and how Left himself didn’t see the value there.

The U.S. Department of Justice launched a criminal investigation into short selling by hedge funds and research firms, including Citron, which has denied any wrongdoing, last year, according to the report.

“As the DOJ, you know, hopefully, one day development will realize that this boogeyman, or short sellers, doesn’t exist,” said Left when asked about the status of the investigations and Citron’s role in them.

Related: IOSCO Lays Out Roadmap for Crypto Regulation

Last week, Global security regulation group the International Organization of Securities Commissions (IOSCO) issued its “roadmap” for dealing with cryptocurrencies, designed to “prioritize policy-focused work on crypto-asset markets and activities.” The group formed a task force last year to craft the plan.

The IOSCO said two working groups will publish reports with recommendations on decentralized finance (DeFi) and crypto assets. The U.S. Securities and Exchange Commission will oversee the DeFi project, with the U.K. Financial Conduct Authority handling crypto duties. The reports are due at the end of the year.

The working groups will focus on market integrity and investor protection and offer guidance on how regulatory frameworks for securities could be applied to digital assets.

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