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In fact one could argue that the majority of investors knew precisely that it was a scam, precisely that it was a house of cards and, blinded by their own greed, thought they could get in and out before it all fell down taking some other sucker with it.

The people I feel bad for in this situation are the people on the receiving end of the pension funds that bought into it.

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It seems like there are plenty of people essentially thinking something along the lines of: "I know this is a useless asset that only an idiot would think has real value, but I will get in and unload it on a bigger idiot before the crash...".

The issue with investing using the "bigger idiot hypothesis, is that sometimes, you are the biggest idiot and are left holding the bag of sh$#.

Sadly, it seems that often the biggest idiots somehow end up in governments and financial institutions.

The Ontario teachers pension fund invested $95 million into FTX that they have to write off. They have $295 billion under management, so 0.03% of their assets were lost. In the last week the Canadian dollar fluctuated between from 75 down to 73 cents on the US dollar, or 4% of its value. I don't think the teachers pensions are affected by the fluctuations of the USD based portfolio of the fund, and they certainly aren't going be affected by the FTX investment.

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