It is a great example of someone (the "expert") convincing a non-technical person that they are the "ninja rockstar 11x post-quantum hash function expert".
I've seen this many times. Managers / owners don't have ability to assess who is an expert and who isn't. So whoever talks more convincingly is the "ninja rockstar". After that they can do no wrong. Also after that somehow admitting publicly that the person they picked is a scam artist becomes pretty hard, because it also means admitting to their own mistake of believing them.
Others who see what's going on, leave and this this eventually leads to the whole ship sinking.
Oh and accusations of drunkenness of course, those are always so constructive and helpful.