A closer look
In 1998, the Russian government decided the best way to finance its massive deficit was by acting like a degenerate crypto bro. They issued short-term treasury bills known as GKOs, offering ridiculously astronomical yields of up to 200%. Since they had no actual revenue, they just issued new bonds to pay off the old ones—the literal definition of a Ponzi scheme. When oil prices dropped and investors inevitably panicked, the whole house of cards collapsed. Russia defaulted on its debt, wiping out fortunes and proving that governments make the most terrifying scammers.
