Collapse of FTX Crypto Empire: The Role of Effective Altruism
The collapse of the FTX crypto exchange, led by Sam Bankman-Fried, is attributed to the ideology of effective altruism, according to Aditya Baradwaj, a former engineer at Alameda Research. Baradwaj explains that the ideology, which encourages making as much money as possible to donate later, led to increasingly risky decisions.
Bankman-Fried, under this guise, made substantial donations for causes like preventing pandemics and curing malaria in developing countries. He also donated to both the Democratic and Republican parties in the U.S. However, these altruistic actions veered into bizarre territory when he considered paying Donald Trump $5 billion not to rerun for president in 2024.
Despite facing numerous charges and mounting evidence against him, Bankman-Fried maintains his innocence, reflecting his deep belief in his altruistic motives. The trial is expected to shed more light on the series of events leading to the collapse of the FTX exchange.
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