Effective altruism fueled SBF’s ‘ridiculous’ actions at FTX: Ex-Alameda engineer

cointelegraph.com:

Effective altruism was used to justify “increasingly risky and ridiculous” actions at crypto exchange FTX prior to its ultimate collapse in November 2022, says a former software engineer at Alameda Research.

Speaking to Cointelegraph just days before FTX founder Sam Bankman-Fried’s Oct. 3 trial, Aditya Baradwaj shared how the ideology played a role in the company’s collapse while explaining what it was like to work under the former billionaire.

Baradwaj claimed that effective altruism — which advocates that people make as much money as possible to give it away later — tipped the scales from reason and moved many of the decision-making processes at the company toward insanity.

Prevalent throughout the tech circles of Silicon Valley and quantitative finance firms in New York, Baradwaj said effective altruism was an alluring and integral part of the cultural DNA at FTX and Alameda Research.

As an engineer at Alameda Research, I had my entire life savings stolen from me by my former boss: Sam Bankman-Fried.

Now, after months of recuperation from the craziness of the FTX collapse, I’m ready to tell my story.

Let’s start at the beginning:

(1/25) #SBF #FTX pic.twitter.com/x5wKvT0Dy2

“All of us at the company had this vision of ‘I think altruism is good and I think doing things effectively is good.’ So you put these things together and it’s like, ‘obviously this thing is good,’” he said.

Under the guise of effective altruism, Bankman-Fried donated millions of dollars to prevent future pandemics and cure malaria in developing countries. Additionally, Bankman-Fried was one of the top donors to the Democratic party in the United States, however, he later admitted to donating to Republicans as well. 

As Big Short author Michael Lewis told