Entrepreneur, business owner, former Chief Fintech Advisor, coder, worked in finance, trained as an engineer. - not financial advice

Bermuda
Joined February 2008
Denis Pitcher retweeted
Dear Secretary Bessent @SecScottBessent, My name is Everett Stern. In 2010 I was a compliance officer at @HSBC. From a back office in New Castle, Delaware, I watched billions of dollars move to drug cartels, sanctioned regimes, and terrorist organizations. The enemies of the United States. I documented it, I escalated it, and when the bank would not act, I took it to the @FBI, the @CIA, and eventually the @SECGov. The result was a $1.92 billion settlement. At the time, it was one of the largest in American history. It was also about five weeks of the bank’s profit. Not one banker was charged. Not one went to prison. I paid a different price. I lost my career, my savings, and my place in the industry I had trained for. I was blacklisted. Every door in American finance closed at once. I slept on a camping cot in a 300 square foot apartment because I could not afford a bed, and I waited tables at @PFChangs to eat. I tell you this not for sympathy, but so you understand that I know exactly what it costs to do the right thing in American finance, and exactly how little the system does in return. I made that sacrifice because I believed it would change something. Yesterday, your department fined @BankofAmerica $1.2 billion for failing to report more than $5 billion in suspicious transactions, some of it tied by your own findings to Chinese laundering networks, narcotics, and the southwest border, alongside 475 apparent sanctions violations touching Russia, Iran, and global terrorism. The bank admitted it willfully violated the Bank Secrecy Act. Fourteen years after HSBC. A bank with “America” in its name. And once again, not one individual charged. Secretary Bessent, I want to say plainly what I believe you already know. The fines are not working. A fine is paid by shareholders, absorbed by the balance sheet, and forgotten by the next earnings call. Bank of America reported earnings this morning. Nobody who set the alert thresholds, nobody who decided the 2024 cease and desist could wait, nobody who chose the backlog over the law will lose a single thing they value. Their lives are untouched. That is the entire reason the behavior repeats. This is money laundering. This is blood money. Money that reaches a cartel buys fentanyl that kills Americans. Money that reaches a terrorist organization buys the next attack. This country has fought a war on drugs and a war on terror for decades, at enormous cost in lives and treasure, and all the while we have allowed the financing to flow through institutions we charter and regulate. Cut off the money and we win. We have never seriously tried. There is also a question of equal justice that I cannot let go. Before I walked into the FBI building to report HSBC, I stopped in front of the Great Seal on the wall and read the words engraved beneath it: “Justice is the defense of our liberty.” I believed that. I still want to. But every day in this country, people go to prison for crimes that are nothing next to moving money for the people who want Americans dead. A suit, a title, and a corporate badge should not be a shield from the consequences that apply to everyone else. If a street dealer goes to prison for what he sells, the banker who moved the cartel’s money should be standing next to him. I also want to raise something that is rarely said in these conversations. Why has no one inside Bank of America come forward the way I did? The answer is that everyone in American banking knows what happened to me, and to the whistleblowers who came after. The last person who spoke up is the only policy anyone believes. That is a culture problem, and it starts with leadership, in the banks and in the agencies that regulate them. This is not a political issue. It has spanned administrations of both parties. It is a national security issue, and I am asking you to treat it as one. Three things would change the math overnight. Refer individuals for criminal prosecution. Not the analyst in the queue. The executives who set the thresholds and chose the risk. One banker in handcuffs would do more than every fine in Treasury’s history combined. End “too big to jail.” An institution cannot be too big to fail and too big to jail at the same time. If it is the first, it must be held to a higher standard, not a lower one. And if Bank of America will not act as America’s bank, review its charter. A national charter is a privilege granted on behalf of the American people. It should be conditioned on not moving money for the people trying to kill them. Secretary Bessent, you said yesterday that these actions send a clear message that even the biggest institutions are not above the law. With respect, the institution was never the problem. The people inside it are above the law, and they know it. Until that changes, I will keep writing letters like this one, and the next bank will keep paying the next fine. I gave up everything I had to stop this. I am asking you to use the power you have to finish it. Respectfully, Everett A. Stern HSBC Whistleblower Founder and Intelligence Director, Tactical Rabbit
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Denis Pitcher retweeted
bombshell report from the OCC out today confirming what we all suspected: between 2020 and 2025, based on a review of 100,000 complaints, America’s largest banks systematically denied banking to lawful businesses based on political and reputational considerations rather than objective financial risk, effectively appointing themselves arbiters of which industries deserved access to the financial system. digital assets was specifically named as one of the six most affected industries. TLDR: we weren't imagining it. OCP2.0 was real.
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Denis Pitcher retweeted
Marc Andreessen reveals why housing, health care, and education keep getting more expensive while everything else gets cheaper "There's basically three components to the American dream. A house near great job opportunities, great health care for you and your family, and sending your kids to good schools" "If you disaggregate the economy over the last 25 years, everything that technology touches basically collapses in price. Television sets, computer games, anything with electronics in it. But if you chart housing, education, and health care, the prices of those things are skyrocketing" "The government restricts supply, zoning laws and university certifications. And then the government responds to the political pressure caused by the rising prices by subsidizing demand. And of course, if you subsidize demand and a fixed supply, you get skyrocketing prices"
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Denis Pitcher retweeted
A retired NASA engineer who had worked on the Space Shuttle program for 25 years was hired by SpaceX at age 62. He described the first week as the most disorienting experience of his professional life. At NASA, a design change required 3 meetings, 2 committees, a review board, and 6 to 18 months of documentation. At SpaceX, his new supervisor said "if it works, build it. If it doesn't, change it by Friday." He sat at his desk after the first day and called his wife. He told her he felt like a man who had been swimming with ankle weights for 25 years and someone just cut them off. He could move. He could decide. He could build something in the morning and test it in the afternoon. The constraint that he had accepted as the nature of aerospace engineering turned out to be the nature of bureaucracy. Within 6 months he had contributed to more design iterations than he had completed in his last 5 years at NASA. Not because he was working harder. Because the time between having an idea and testing the idea collapsed from months to hours. The same brain. The same knowledge. A different operating system. He described a specific moment where he proposed a modification to a Raptor engine component. At NASA, the proposal would have entered a queue. At SpaceX, the modification was machined by the end of the day and tested by the following morning. He watched his idea become a physical object in 18 hours. At NASA, 18 hours would not have been enough to schedule the first meeting to discuss whether to schedule a meeting. He told an interviewer: "I didn't get smarter when I went to SpaceX. I got faster. The intelligence was always there. The system was in the way." The difference between SpaceX and NASA is not talent. NASA has extraordinary talent. The difference is the time between a thought and a test. SpaceX compresses it. NASA elongates it. The same engineer produces 10x more at SpaceX than at NASA because the bottleneck was never the engineer. It was the meetings about the meetings about the work.
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Denis Pitcher retweeted
Dusting off this tweet from April because this gap in shared understanding of LLM capability is *widening*. It's now less "two groups of people speaking past each other" and more a sharp funnel. - Napkin math somewhere around 6B people (~75% of the population) have barely come in contact with LLMs at all. - Around 1-2B (~20%) are casual and infrequent users of free-tier ChatGPT-like products. This group sees derpy chatbots and treats them a bit like a better Google search, a writing aid, or etc. Maybe an agent tries to book you a flight. I have non-tech friends who (reasonably, imo) say they have not much use for it at all. Even many professionals outside of math&code are in this tier. For example, execs and many other functions spend a lot of their time talking to other people, so while they understand what is happening intellectually, it is still second-hand and a bit abstract. - Now we get to professional use of frontier-grade LLMs in math&code. Somewhere around 20M people (0.2%) see first-hand that large, complex projects that used to take them weeks/months can now be completed by agents with a prompt. Building apps, copying apps, translating apps, decompiling apps from binaries... This has all happened very quickly and recently - less than 1 year ago, I was writing code manually by hand, typing memorized computer code commands into a code editor character by character, occasionally pressing Tab to autocomplete a little chunk of code. - And finally we get to the ~5,000 people (~0.00006%) with access to frontier-grade systems internally. The external world has seen the preview. It looks like swarms of thousands of agents collaborating over weeks on software mega projects: minting zero days, running cyber attacks and defenses at machine speeds, discovering new science, advancing the frontier of mathematics. Things that would have taken top professionals in the industry years of work. Meanwhile, human review and comprehension are starting to fall behind. For example, people are still involved in the "archeology" of the OpenAI-HF incident from many months ago. Mathematicians may be poring over the 722 manuscripts on frontier mathematics for a while. The funnel is driven by a combination of factors: 1. The impact scales with ambition, problem size, and horizon. A question with a paragraph answer barely stresses the system. You need a reservoir of big, difficult problems that you really care about. This aspect drives the consumer / professional dimension of the funnel. 2. The jaggedness of the system (which I have written about a lot separately). Capability peaks in domains that are digital, verifiable and economically valuable. This is because LLM capability emerges from reinforcement learning on verifiable rewards on a curated environment mixture driven by revenue potential. This aspect primarily drives the area (e.g. math&code) dimension of the funnel. 3. Access. Free-tier, paid-tier, internal. So this is the weirdness of the moment. The general public has mostly not interacted with these systems. When they have, it looks like a derpy chatbot. The majority of professionals still see only a modest uplift. And a small sliver of professionals are experiencing the vertigo of the curve going vertical. And it is all happening at the same time.
Judging by my tl there is a growing gap in understanding of AI capability. The first issue I think is around recency and tier of use. I think a lot of people tried the free tier of ChatGPT somewhere last year and allowed it to inform their views on AI a little too much. This is a group of reactions laughing at various quirks of the models, hallucinations, etc. Yes I also saw the viral videos of OpenAI's Advanced Voice mode fumbling simple queries like "should I drive or walk to the carwash". The thing is that these free and old/deprecated models don't reflect the capability in the latest round of state of the art agentic models of this year, especially OpenAI Codex and Claude Code. But that brings me to the second issue. Even if people paid $200/month to use the state of the art models, a lot of the capabilities are relatively "peaky" in highly technical areas. Typical queries around search, writing, advice, etc. are *not* the domain that has made the most noticeable and dramatic strides in capability. Partly, this is due to the technical details of reinforcement learning and its use of verifiable rewards. But partly, it's also because these use cases are not sufficiently prioritized by the companies in their hillclimbing because they don't lead to as much $$$ value. The goldmines are elsewhere, and the focus comes along. So that brings me to the second group of people, who *both* 1) pay for and use the state of the art frontier agentic models (OpenAI Codex / Claude Code) and 2) do so professionally in technical domains like programming, math and research. This group of people is subject to the highest amount of "AI Psychosis" because the recent improvements in these domains as of this year have been nothing short of staggering. When you hand a computer terminal to one of these models, you can now watch them melt programming problems that you'd normally expect to take days/weeks of work. It's this second group of people that assigns a much greater gravity to the capabilities, their slope, and various cyber-related repercussions. TLDR the people in these two groups are speaking past each other. It really is simultaneously the case that OpenAI's free and I think slightly orphaned (?) "Advanced Voice Mode" will fumble the dumbest questions in your Instagram's reels and *at the same time*, OpenAI's highest-tier and paid Codex model will go off for 1 hour to coherently restructure an entire code base, or find and exploit vulnerabilities in computer systems. This part really works and has made dramatic strides because 2 properties: 1) these domains offer explicit reward functions that are verifiable meaning they are easily amenable to reinforcement learning training (e.g. unit tests passed yes or no, in contrast to writing, which is much harder to explicitly judge), but also 2) they are a lot more valuable in b2b settings, meaning that the biggest fraction of the team is focused on improving them. So here we are.
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Denis Pitcher retweeted
The guy who invented Amazon Prime disappeared for six years. He came back this week with $250 million and a factory that turns lines of code into tiny working machines. Type different code, a different machine comes out the other end. That sounds fake. Here's why it took six years. A chip fab is the most precise factory humans have ever built, and it makes exactly one kind of thing. Flat silicon that processes information. The moment you want moving parts, multiple materials, or real 3D structure, you leave the fab for a world where getting one new device into production takes years and tens of millions of dollars. Engineers call it one product, one process. It's the reason micro-machines never got their Moore's Law. Holden's Matter Compiler kills the per-product process entirely. Features down to a few microns, no new tooling, and the system measures and corrects every step while it builds, then feeds what it learned into the next design. His first product is the tell on how sharp the strategy is. PrimeSwitch is a 150-amp relay for 800-volt power in AI data centers. It opens in roughly 50 microseconds, about 1,000x faster than a normal contactor. So the first thing to come out of a universal factory is aimed at the one market where demand is basically infinite and a faster switch means less fried hardware. Neal Stephenson wrote the Matter Compiler as fiction in 1995. Holden just shipped the first real product out of one, and it's a light switch for AI data centers.
After six years in stealth, Atomic Machines is out. Our mission: on-demand, universal command of matter. First beachhead: the Matter Compiler, an AI-native manufacturing system that builds working micro-machines from code alone. No per-product tooling. No process development. Different code, different machine.
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Denis Pitcher retweeted
T-Mobile spent five years trying to get rid of the exact spectrum Elon just called "the last critical piece" of complete phone coverage in America. This 800 MHz block is Sprint's old Nextel spectrum, the stuff that powered push-to-talk walkie-talkie phones in 2004. The DOJ forced T-Mobile to divest it as a condition of the $26 billion Sprint merger. Dish had first rights at $3.59 billion and walked away because it couldn't raise the money. T-Mobile finally offloaded it to an investment firm called Grain Management last year for $2.9 billion plus a spectrum swap. Grain's original plan was selling it to utilities for private networks. Fourteen months later, SpaceX buys the whole portfolio, and shares of the carriers who passed on it fall as much as 8% in a single afternoon. Here's why it matters so much. Starlink's satellite signal at 2 GHz can reach your phone outdoors, but it dies at the first wall. 800 MHz penetrates buildings. Most phones already have the band built in. So satellites handle the open sky, this low-band layer handles indoors, and suddenly Starlink Mobile covers everywhere a normal carrier does without the tower network. Stack the moves. $17 billion for EchoStar's 50 MHz of 2 GHz spectrum. FCC approval for 15,000 Gen2 satellites this week. Now the low-band coverage layer. Verizon, AT&T, and T-Mobile paid $81 billion in a single auction for C-band spectrum in 2021, then spent years and tens of billions more deploying it on towers. SpaceX assembled a nationwide carrier out of a distressed-asset sale, a forced divestiture castoff, and rockets it already owns. The walkie-talkie spectrum from 2004 ended up being the piece that lets satellites replace cell towers. Nobody who touched it for twenty years saw that coming.
We announced an agreement to acquire a nationwide low-band spectrum license portfolio that will pave the way for @Starlink to become a major mobile carrier in the US. With this new spectrum and our Gen2 constellation, Starlink Mobile can ensure Americans have access to high-speed mobile broadband no matter where they are → spacex.com/updates#starlink-…
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Denis Pitcher retweeted
Ben Affleck: "I’ve always been into computers. I can write pretty shitty Python scripts." Interviewer: lol Ben: "So obviously you convert the image into a tensor containing the batch, frame and RGB values of every pixel." Interviewer: wtf Ben: "Then run a convolutional neural network for edge detection and feature extraction." Interviewer: jaw on floor Ben: "It’s pretty simple."
Ben Affleck reveals he writes Python, understands convolutional neural networks, worked extensively with GPUs, and used his celebrity status to get private looks at Google and OpenAI’s video models “I’ve always been kind of into computers since I was young. Then, when film started to move from analog film to digital, I became more interested in that aspect of it. The visual-effects workflow for many years has included machine learning, so I can write pretty shitty Python scripts and stuff like that. “With convolutional neural networks, which were the precursors to what the transformer can do, which is much more computation simultaneously, you would do things like look at what’s called a tensor. That’s the numerical translation of a visual image in numbers, like the batch number, the frame number and the red, green and blue values of each pixel in each frame. It’s just that simple. That numeric is called a tensor. “You’d use a convolutional neural network to identify patterns that reveal what’s called edge detection or feature extraction, which is identifying patterns well enough to know, this is where the window ledge is, so we can more easily take the green-screen image out and replace it with something. “That was familiar to me early on because, prior to Artists Equity, I had a small visual-effects company. I’ve worked with GPUs a lot too. The visual-effects guys said, ‘Hey, you should see. There are a couple: Google and this other company, OpenAI, are doing really interesting stuff with transformers in video.’ “I’ve learned that I can actually just call up and go, ‘Hey, it’s Ben Affleck. Can I come see what you’re doing?’ Sometimes people say yes, to my astonishment.”
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A single-payer “universal” health care system is the wrong model for Bermuda, especially beside an insurer-provider oligopoly. The government already struggles to run basic health administration. Handing it the whole system does not fix that.
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Coverage should follow the person, not the employer. Tax insurance and pay a universal credit. Pools should be demographically representative, so risk cannot be dumped on a public plan.
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We need more competition under real oversight, not a bigger monopoly for the same administrators and the same big players. Pushing universal care without saying how it would be run hands power to people who have already shown they cannot manage the basics.
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Agency matters.
Software engineer with 10+ years of experience: I lost my job because of AI non tech youtuber:
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I suspect desperation to take action will drive us to poor policy decisions that will kill the economy like term limits did in 2008. Eliminating rather than simplifying duty and trying to introduce a new tax system to replace it is a likely candidate. royalgazette.com/reinsurance…
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Denis Pitcher retweeted
Our latest research paper explores the growing connection between AI and digital assets and explains why broad AI adoption may drive new demand, utility and applications across the digital asset economy. blackrock.com/us/individual/…
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I love these software is dead takes. "AI can build it in a weekend" is the new "guys who did a coding boot camp" The issue is always the same. Software doesn't fix bad process, it can amplify it. If you dont understand the problem you're solving, the tool isnt a solution.
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Governments should be issuing verifiable credential versions of documents with verifiable addresses with links you can crawl to confirm provenance.
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‼️ BREAKING: We're in contact with the Revolut hacker. According to them, they didn't only take Revolut data, they've also compromised multiple Italian law enforcement departments. They say the operation targeting Revolut ran for six months, and that they used Italian law enforcement systems to send data requests to Revolut. They claim to hold 147 GB taken from the Italian side, including internal docs, calendars and personal material, among it the chat logs of a federal officer arguing with his wife.
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Denis Pitcher retweeted
The @Revolut data leak drives home a point I have been making for years due to my work with @inca_digital that most don’t want to acknowledge: banks and regulators are deeply unprepared for the modern shape of fraud. Now Revolut is facing near unbounded legal risk (a single home invasion resulting in a fatality after this leak will dog them for decades), and criminal actors have another tool in their belt they know works, so if you think this stops with Revolut you are insane. If you don’t have a financial intelligence firm doing this at scale as a defensive layer, no matter how sophisticated you think you are, you are being exploited right now. It’s just a question of when both you and the mainstream media find out about it.
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The big issue with KYC and CDD Is duplication of data which introduces considerable risks. The regulations around it don't make it very realistic to minimize data collection and be able to reference to someone elses copy so everyone collects copies.
Woke up to all my data leaked by @Revolut. Sharp reminder that KYC hasn’t produced meaningful upside and has put many in harm’s way.
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