TheSporkDec 18, 2022
Anil
A thing I’m reflecting on is that, a generation ago, Enron became a symbol of corporate corruption for (among many other things) costing pension funds $2B with their scams. Compare that to how much crypto scammers must have already cost pension funds dabbling in this shit. And yet they’ve avoided nearly as much outrage.
Dec 17, 2022 at 11:52pmWeb
Show threadzeruchDec 17, 2022

@anildash ...that's only a function of time. As you said, it's been "dabbling" so far. When (not if) real, real fiat currency takes a hit, heads will roll, and I welcome that moment inasmuch as it's an opportunity to review the whole system and if it's time for a real regulatory (and jurisprudential) "correction" of cosmic proportions.

I'm with George Carlin, send a handful of real Wall St wolves (and their crypto/token doppelgangers) to gen-pop prison and this gets sorted out very quickly.

Show threadThomas Sobieck 🐘Dec 18, 2022
@anildash @zeruch lmao. Good one. Ponzi bucks having more stability than real dollars. Funny!
Show threadMaria BustillosDec 17, 2022

@anildash

hrm

Steven Mnuchin became Treasury secretary

Show threadMark LevisonDec 17, 2022

@anildash crypto is a mystery and so people fall for it.

I think this is like Dutch tulip bubble or the South Sea company.

Show threadMichael SokolovDec 17, 2022
@anildash do you know of pension funds in crypto? That would've been scandalous before now?
Show threadAnilDec 18, 2022
@msokolov yeah I’m certain I’ve seen funds that “diversified into crypto exposure”, I need to go dig up examples.
Show threadHenry FungDec 18, 2022
@anildash @msokolov Ontario Teachers was one of FTX’s bigger debtors
Show threadDr Grace PengDec 18, 2022
@henryfung @anildash @msokolov 😱
Show threadhealynDec 17, 2022
@anildash i don't think crypto scammers have made much of a dent in any pension fund tbh. i do feel bad for retail investors who fell for it
Show threadKim ScheinbergDec 17, 2022

@anildash
Not until this moment had I considered that pension funds are dabbling in crypto. I know about the politicians claiming to take their salaries in crypto, and I know about El Salvador, but... <google> Holy shit!

"According to a recent study, 94% of America’s state and local government pensions—often regarded as the dumbest institutional investors in the world by Wall Street—are gambling on cryptocurrencies."

Maybe I'm uniquely ignorant, but is it possible not enough people know yet?

Show threaddustinDec 18, 2022
@kims @anildash this is happening up in canada, too! https://financialpost.com/fp-finance/ontario-teachers-writes-off-ftx-stake-taking-95-million-loss
| Financial Post

Ontario Teachers’ Pension Plan said it will write down its stake in FTX, Sam Bankman-Fried’s now-bankrupt cryptocurrency exchange. Read on

financialpost
Show threadSusan BeebeDec 18, 2022

@kims @anildash

$95M lost —> https://toronto.citynews.ca/2022/11/10/ontario-teachers-pension-plan-failing-crypto-platform-ftx/

CityNews

Show threadGlendon MellowDec 18, 2022

@susanbeebe @anildash @kims

Crypto: not even once

Show threadPlanet_CCDec 18, 2022
@susanbeebe @kims @anildash wow. That’s some bullshit. Someone should see prison time for that
Show threadKatDec 18, 2022
@susanbeebe @kims @anildash Just absolute malpractice.
Show threadBertDec 18, 2022
@susanbeebe @kims @anildash that’s a big portfolio to manage if $95M was .05 percent, $190,000,000,000.
Show threadAccidental Resident (she/they)Dec 18, 2022
@susanbeebe @kims @anildash oh no!
Show threadMichael SokolovDec 18, 2022
@kims @anildash wow mind blown
Show threadEric MatthesDec 18, 2022

@kims @anildash The non-tech people in my world who are still investing in crypto say things like "I know I might lose my investment, but if it takes off..."

I think crypto still seems like a lottery ticket to many people.

Show threadDavid ZaffrannDec 18, 2022
@anildash @kims oh my god.
Show threadJohn PanzerDec 18, 2022
@kims @anildash Wait WHAT
Show threadtom4okstateDec 18, 2022
@kims @anildash this is insane. It's a useless asset. Even gold had some level of utility. Crypto is literally nothing.
Show threadDavid GerardDec 18, 2022

@kims @anildash it is the most fucked up thing ever

the reason is that we had ~zero interest for ages, and they *needed* returns. so they invested in insane nonsense.

now a lot of those fund managers are having to answer some pointed questions like "can you *show* us your due diligence over FTX" and not a moment too soon

Show threadJorge StolfiDec 18, 2022
@kims @anildash Hopefully their exposure is genrally small, like a couple of % of their portfolio. But there may be some that are dumber than that.
Show threadRich Lafferty 🐀Dec 18, 2022
@kims @anildash I saw Anil mentioned the Ontario Teachers' crypto loss. I noticed that in the news here when FTX folded -- but also, OTPP is one of the largest institution investors in the world, and their $90M loss represents 0.03% of their holdings. Basically making long-odds bets with play money at that point. Quebec's pension plan is even larger and had a similar loss.
Show threadBrent J. Arnold (He/Him)Dec 18, 2022
@kims @anildash They're often sophisticated investors, but many are under so much pressure to provide high rates of return that they're prepared to invest into high-risk, high-return products.
Show threadMingDec 18, 2022
@kims @anildash How much have pensions lost in META? BTC is down 64% YTD, META is too. BTC is down 75% from its all time high with a market cap loss of $900bn to $1tn. AMZN has experienced a similar market cap decline. META has seen its market cap decline ~$750bn from its peak. The rapid rise in the valuation of tech and crypto was driven by cheap money. Quantitative tighening and higher rates have killed the valuation of both. #BTC #META #AMZN #FederalReserve
Show threadhammerDec 18, 2022
@kims @anildash bet we will find them predominantly corrupt red states.
Show threadDr.Susan BushinskiDec 18, 2022
@kims @anildash wow very sad, won’t end well at all
Show threadfulanigirl has movedDec 18, 2022
@kims @anildash
absolutely frightening and alarming.... And just think many in Congress want to make it so Social Security funds can be traded..... we all end up as old damn serfs.
Show threadJasper Jenkins👵✡️♌️🇺🇲🇺🇦Dec 18, 2022
@kims @anildash OMG!😳😳
Show threadswanksalotDec 17, 2022
@anildash The anger took a while to build against Enron, so maybe it will also build against crypto as more become aware of the greed and duplicity
Show threadSandhuDec 18, 2022
@anildash I’m guessing it’s because most people involved are retail “investors” who knowingly and voluntarily invested in something that most people see as foolish. Many are actually relieved that this useless environment killing thing might be dying.
Show threadEllen Teapot 🇨🇦🏳️‍⚧️Dec 18, 2022
@anildash @kyleve The pension plan for Ontario teachers bought into this shit
Show threadTrading Places ResearchDec 18, 2022
@anildash This is very very small compared to Enron or GFC
Show threadAmy HoyDec 18, 2022
@anildash reporting, in general, used to have a lot more focus and attention span. i think that’s the real issue.
Show threadMingDec 18, 2022
@anildash is that perhaps because most people are wary of crypto whereas most people believed Enron was rock solid? Thus, empathy and sympathy for those who lost money in crypto may simply be lacking, e.g. they should have known better.
Show threadLeta McCollough SeletzkyDec 18, 2022
@anildash as a former Houstonian, Enron has long loomed large in my mind. (Even knew a guy from the documentary, “The Smartest Guys in the Room.”) Sickening to see pension funds once again at risk…
Show thread⚯ Michel de Cryptadamus ⚯Dec 18, 2022

@anildash are you in america? because I think most of FTX's victims are not. remember Americans were (theoretically, at least) barred from using the main FTX platform.

over in Nigeria the collapse of a different exchange AAX is... not going so well. wouldn't be surprised if there's darkening clouds in other places over the FTX situation.

https://www.legit.ng/business-economy/technology/1507482-fears-nigeria-crypto-currency-firm-disappears-suspend-withdrawals-staff-beaten-by-customers/

Nigerians storm crypto firm office in Lagos, beat staff as executives disappear

Nigerians have vented their anger on staff of Atom Asset Exchange (AAX) crypto currency firm located in Lagos for their inability to make withdrawals to bank.

Legit.ng - Nigeria news.
Show threadLoraDec 18, 2022
@anildash there are still pension funds? Lol. Nowhere I’ve ever worked. Pensions went out when Wall Street bankers decided they would much rather have us gambling with our savings in their heavily rigged casino. All kidding aside, it’s nuts that any pension plan ever thought crypto was a safe investment. I know a lot of very smart people in IT who had a lot of money in crypto and I could never understand why.
Show threadKevin Karhan Dec 18, 2022
@anildash #LackOfAccountability & #LackOfConsequences are the root problems here!
Show threadConstantin JacobDec 18, 2022
@anildash I keep staying away from Discord because I didn't join any until the crypto scams ran rampant with it and now the Discord brand will forever be attached to crypto scams in my head
Show threadMtnBikerDec 18, 2022
@anildash Crypto was always pure gambling with no underpinnings. Pyramid schemes are nothing new, but people forget. The government failed by not investigating and regulating. IIRC Enron was a US corporation under some regulation. Neither was sufficient. Some where afraid of missing out on the next Apple, Amazon or whatever
Show threadMFTechDec 19, 2022

@anildash

Pension funds have no fricking business making risky investments without oversight by an army of auditors and security analysts. Heads should roll and suits should be filed. What’s next? Investing in NFTs? Reprehensible.

Show threadShe smashesDec 19, 2022
@anildash all we’ve learned as a society is how to sell the scam better