Don't tell me they exhausted all the investment opportunities and crypto was their only choice. They could as well put the money into 1000 random start-ups and be better off risk wise
At a more fundamental level, this is just another example of the principal-agent problem. Pension fund managers optimize for their own careers rather than for the financial health of retirees. This is one of the reasons why all defined benefit pension plans should be eliminated and replaced by defined contribution plans.