Former Engineer Claims Altruism Led to FTX Collapse
A former software engineer at Alameda Research has stated that the ideology of effective altruism played a major role in the collapse of crypto exchange FTX. Effective altruism promotes making as much money as possible to give away later, but according to the engineer, it led to increasingly risky and irrational decisions at FTX.
Altruism and Insanity
The engineer, Adi Baradwaj, said that effective altruism became a central part of the cultural DNA at FTX and Alameda Research. However, he believes that it veered into a style of thinking where the ends justified the means, resulting in bizarre and ridiculous decisions that no sane person would make.
Donations and Political Support
Under the guise of effective altruism, FTX founder Sam Bankman-Fried donated millions of dollars to prevent pandemics and cure malaria in developing countries. He was also a significant donor to the Democratic party. However, Baradwaj revealed that Bankman-Fried also considered paying Donald Trump $5 billion not to run for president in 2024.
Belief in Altruistic Motives
Baradwaj acknowledged that Bankman-Fried genuinely believed in his altruistic motives. Despite allegations that he hid behind a fabricated persona, Bankman-Fried came across as someone who had a mission and was motivated to make it happen. Baradwaj speculated that this belief may be why Bankman-Fried maintains his innocence despite mounting evidence against him.
Closing Thoughts: The Trial’s Importance
Baradwaj hopes that the trial will shed light on what truly happened and provide answers to the questions surrounding the collapse of FTX. He emphasized the importance of uncovering the truth and understanding the events that transpired.
Hot Take: Effective Altruism’s Role in FTX’s Downfall
The ideology of effective altruism was used to justify risky and irrational actions at FTX, leading to its collapse. This philosophy, which advocates making as much money as possible to give away later, shifted decision-making processes toward insanity. Despite claims that founder Sam Bankman-Fried hid behind a fabricated persona, he genuinely believed in his altruistic motives. The trial will hopefully reveal the truth and provide clarity on the events that unfolded.
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