The “Grift Shift” is Here: Why Ben McKenzie’s Crypto Documentary is a Warning for the AI Era
Tens of millions of Americans lost money in the crypto boom and bust, often funds they couldn’t afford to lose. But the real story isn’t just about bad investments; it’s about a fundamental vulnerability to compelling narratives, even when divorced from reality. Ben McKenzie, known for roles in The O.C. and various crime dramas, understands this better than most. His new documentary, Everyone Is Lying to You for Money, isn’t a dry technical breakdown of blockchain technology, but a darkly humorous and deeply unsettling investigation into the psychology of hype, the allure of easy money, and the systemic failures that allowed the crypto world to flourish – and then implode.
From Showbiz to Skeptic: The Genesis of a Documentary
McKenzie’s journey began, ironically, with resisting the siren song of cryptocurrency. Armed with a dormant economics degree, he scrutinized Bitcoin and quickly identified red flags mirroring those flagged by the SEC. This initial skepticism blossomed into a full-blown investigation, documented alongside co-author Jacob Silverman, and ultimately evolved into the film. A chance encounter with Celsius founder Alex Mashinsky – a “used car salesman” who would later be convicted of fraud – solidified the documentary’s ominous tone. McKenzie’s approach is refreshingly candid, leaning into his own persona and acknowledging the absurdity of the situation, a tactic he credits to influences like Michael Moore and Louis Theroux.
The Illusion of Innovation: El Salvador and the Real-World Consequences
The film doesn’t shy away from showcasing the human cost of the crypto crash. McKenzie’s reporting takes him to El Salvador, the first nation to adopt Bitcoin as legal tender, revealing a stark contrast between the utopian promises and the lived reality. The government’s vision of revolutionizing remittances through Bitcoin failed spectacularly, hampered by practical limitations and economic realities. As McKenzie points out, the glossy social media narrative rarely reflects the on-the-ground experience. This disconnect highlights a crucial point: the appeal of crypto often lies in the *story* it tells, not the underlying technology.
Celsius: A Case Study in Deceptive Practices
The documentary meticulously dissects the case of Celsius, a lending platform promising impossibly high returns. McKenzie’s interviews with executives reveal a disturbing lack of transparency, with explanations for these returns shrouded in “proprietary” secrecy. The eventual collapse of Celsius, and the imprisonment of its founder, underscores the inherent risks of unregulated financial products promising unrealistic gains. This isn’t an isolated incident; it’s a pattern of behavior that McKenzie argues affected far more people than the infamous Bernie Madoff scandal.
The Systemic Risk: Contagion and the Future of Financial Instability
McKenzie doesn’t portray the crypto collapse as a contained event. He warns of potential contagion, pointing to the 2022 banking failures – Silvergate, Silicon Valley Bank, and Signature Bank – all with significant ties to the crypto industry. These failures, triggered by a massive crypto crash, demonstrated the vulnerability of the traditional financial system to shocks originating in the digital asset space. The risk, as McKenzie sees it, is that a future crash, more deeply intertwined with regulated institutions, could trigger a crisis on the scale of 2008. The Federal Reserve’s review of the 2023 bank failures highlights the interconnectedness of these risks.
The “Grift Shift”: From Crypto to AI and Beyond
Perhaps the most prescient warning in Everyone Is Lying to You for Money is McKenzie’s observation of the “grift shift” – the transfer of the same hype and deceptive tactics from the crypto world to the burgeoning field of Artificial Intelligence. He argues that the core problem isn’t the technology itself, but the tendency to prioritize narrative over substance, to sell a vision of transformative change without a solid foundation. This echoes concerns raised by experts about the current AI boom, where inflated expectations and unsubstantiated claims are rampant. The underlying principle remains the same: trust is not inherent in code, but relies on the integrity of the people who create and promote it.
Trust, Human Connection, and the Future of Finance
McKenzie’s testimony before the Senate Banking Committee underscored his central thesis: money is fundamentally built on trust. He argues that the promise of a “trustless” system, enabled by blockchain technology, is a fallacy. Ultimately, we must trust the individuals behind the code. As new technologies emerge, it’s crucial to maintain a healthy skepticism, demand transparency, and prioritize human connection over algorithmic promises. The lessons from the crypto crash aren’t just about avoiding financial losses; they’re about safeguarding the foundations of a stable and trustworthy financial system. What new narratives will capture our attention next, and how can we ensure we’re not being sold a false bill of goods? Share your thoughts in the comments below!
