Review
Comment
Morality
7 min read

Sam Bankman-Fried: doing the math on morality

The calculated character and philanthropy of crypto-criminal Sam Bankman-Fried is analysed by Krish Kandiah, who finds it doesn’t to add up.

Krish is a social entrepreneur partnering across civil society, faith communities, government and philanthropy. He founded The Sanctuary Foundation.

A man with curly dark hair.
Sam Bankman-Fried at a crypto-conference, 2021.
Cointelegraph, CC BY 3.0, via Wikimedia Commons.

Going Infinite, Michael Lewis’ biography of Sam Bankman-Fried, the world’s youngest self-made billionaire is quite the compelling read.  

For a start Lewis has an incredible ability to explain complex economic and business scenarios in a way that is not only accessible, but also gripping.  It is no wonder his previous books have been turned into Hollywood blockbusters.  

Lewis also has a knack for finding the humanity in almost any given situation. Whether he is writing about the system for picking a world-beating baseball team, the global economic crisis or, in this case, the rise and fall of a cryptocurrency exchange, he delves deep into the characters at the heart of the stories, exposing their strengths and weaknesses, their struggles and values.   

The publication of Going Infinite last month also coincided with Bankman-Fried’s real time court case, ending in a guilty verdict for, in the words of US attorney Damian Williams, “one of the biggest financial frauds in American history – a multibillion-dollar scheme designed to make him the king of crypto.” 

This fraud centred on Sam Bankman-Fried’s company FTX, a cryptocurrency exchange. It   emerged as one of the largest in the world with billions in deposits. All helping Bankman-Fried, aged just 29, to become recognised by Forbes magazine as the 41st richest American.

For all Bankman-Fried’s (and his friends’) talk of altruism, they weren’t very good at being nice to each other.

My personal interest in the man behind the fraud was shaped by three things. Firstly, as an adoptive and foster parent of two children who are on the autistic spectrum, I was interested in what Lewis would say about the common speculation that Bankman-Fried is also on the autistic spectrum.   

I was also intrigued by Bankman-Fried’s philosophical approach to philanthropy and how Lewis would present the problems with the movement known as Effective Altruism.  

Finally, I was interested in just to what extent Bankman-Fried’s commitment to mathematical algorithms overshadowed his moral awareness, given that it may well ultimately result in a sentence of 100 years behind bars.  

Autism  

Lewis invites us into as much of the inner world of Bankman-Fried as he can. He writes about his loneliness in childhood and his struggles with social conventions, for example. One particularly powerful moment is when we are allowed to eavesdrop on a video call with Vogue editor Anna Wintour. Bankman-Fried cannot do the call without simultaneously playing a video game. He doesn’t want to see Ms Wintour’s face while she is speaking and only looks at her when he is speaking.  

While Lewis readily points to traits that are commonly associated with people on the autistic spectrum – Bankman-Fried’s struggle to comply with social norms and difficulties understanding facial expressions, for example – he avoids using the term “autism”.   

 It seems that Bankman-Fried himself is aware of his neurodivergent traits and is not afraid to talk about the way they impact his emotional and existential intelligence.  

At one point he writes to his girlfriend:   

“I don't feel happiness. What's the point in dating someone who you physically can't make happy?"  

He went on to say:  

“In a lot of ways I don’t really have a soul”  

I found statements like these hard to read, but insightful. As a culture we are growing in our understanding and appreciation of a range of areas of diversity, however this has yet to be robustly applied to enable both widespread social acceptance and self-acceptance. The fact that Lewis chooses not to use the term autism may be a symptom of this. 

Altruism  

Sam Bankman-Fried was a very visible member of the Effective Altruism (EA) movement. EA is a fascinating philosophical approach to philanthropy which challenges individuals to consider their lives in terms of maximising their resources for the benefit of the world. Bankman-Fried’s answer to the question “How can I do most good with my life?” was to plan to earn a very large sum of money, ideally an infinite sum of money, that could then be used to help solve huge global issues such as the threat of nuclear war or another global pandemic.  

There are many criticisms of the EA movement, and, Lewis explores several of them during the course of the book.  Perhaps most obviously, for all Bankman-Fried’s (and his friends’) talk of altruism, they weren’t very good at being nice to each other. In fact, there was a major falling out between the effective altruists at his first company Alameda Research where half of the employees left because of his leadership style. Charity, it seems, did not begin at home.  
It is also unclear how much money Bankman-Fried actually gave away to philanthropic causes. And it is alleged that just a month after FTX collapsed, the company even began trying to claw back the charitable donations it made. According to direct messages on X with journalist Kelsey Piper, Bankman-Fried agreed his ethically-driven approach was "mostly a front".  

"Some of this decade's greatest heroes will never be known," he wrote to Piper, "and some of its most beloved people are basically shams." 

The quest to do good in the world seemed to have become more like a gambling obsession with Bankman-Fried, a game in which the ends justified the means.

They say the road to hell is paved with good intentions. It is uncertain whether Bankman-Fried had good intentions at all or whether the lure of billions of dollars became so irresistible that whatever virtue once existed was sacrificed to vice.  

There was another dark side to Bankman-Fried’s EA philosophy. He seemed to be fascinated by the question of just how far he could go in his calculations of trade-offs and risks in the supposed cause of saving the future of humanity? What was the highest risk he would take? What boundaries would he cross for financial gain? What would need to be sacrificed on the way? The quest to do good in the world seemed to have become more like a gambling obsession with Bankman-Fried, a game in which the ends justified the means.  

Automatism  

Sam Bankman-Fried was not afraid to be honest about his struggles to process and express empathy in socially acceptable ways.  He once said:  

"There's a pretty decent argument that my empathy is fake, my feelings are fake, my facial reactions are fake.” 

However, what he seemed to struggle with in empathy, he apparently tried to make up for in logic. The following example is helpful.  

Lewis records that Bankman-Fried saw Donald Trump as an “existential risk” to democracy and good governance and decided the best way to remove the threat was to offer to pay him not to run for president—an idea Trump was reportedly open to. 

“His team had somehow created a back channel into the Trump operation and returned with the not terribly Earth-shattering news that Donald Trump might indeed have his price: $5bn. Or so Sam was told by his team,” Lewis writes

I have some admiration for Bankman-Fried’s out-of-the-box thinking. He was speaking Trump’s language. He was trying to save the world. He was trying to solve a problem. Logically it was sound. But his $5,000,000,000 calculation was fundamentally flawed. It took no account of democratic values, of the consequences of feeding an ‘existential threat’ billions of dollars, or the illegality of bribery and corruption on that scale.   

The same miscalculation haunts the EA movement. While earning infinite amounts of money to save the world or prevent the climate emergency sounds logical, it fails to factor in the dark side of humanity: greed, lust, pride or gluttony, or whichever vice stopped Bankman-Fried from giving away his promised sizeable sum of money and led him rather to committing one of the largest frauds in history. The tech-bro altruistic movement also doesn’t factor in the bright side of humanity: compassion, humility, generosity, sacrifice. It doesn’t account for the human things that keep us going as we pursue justice - proximity to the people we are serving, faith or beauty.  

The verdict against Bankman-Fried shows us that hard logic, like lofty ideals, is not enough to protect us from the bad we might do or propel us unswervingly towards the good we should do. The equations are flawed. We are more than machines. We are not social or biological robots. Our emotions and reactions can never be completely predictable or automatic because we are human beings, each of us with our unique strengths and weaknesses.  

Ultimately, this is what I liked about Lewis’ book – his portrayal of Sam Bankman-Fried not in terms of how much money he made, or how many years he will spend behind bars, not as Crypto-King or Lord of Frauds, but as a uniquely talented and flawed individual who wrestles with some of the biggest existential paradoxes, and who is still, by the way, only 31 years old.  

Snippet
Comment
Community
Sport
4 min read

What really happens when the Grand National comes to town?

Enjoy those great experiences but remember the neighbours.

Stuart is communications director for the Diocese of Liverpool.

Smartly dressed people crowd a station platform and stairs.
Racegoers arrive at Aintree station.
Merseyrail.

I love watching the periphery of events. Frequently I will be at a gig and find my eye and mind drifting to what is going on at the fringes of the stage. Security distributing water to the thirsty souls of the mosh pit whilst removing the crowd surfer of crushed individual (who invariably rushes back through the stadium to dive back into the fun). You have the semi interested standing at the back trying not to let a good gig interrupt their conversation. You see the road crew retrieving dropped mics, endlessly swapping guitars and nervously following the antics of the lead performers. It is all part of a community drawn together for a couple of hours, from the passionate obsessive to the mildly involved all being sucked into the occasion. 

And for over 30 years I have watched the very fringe of the world famous Grand National event. My wife has taught at a school about half a mile from the famous racecourse so twice daily we pass it by to and from her workplace. I have been to corporate events, our diocese has even held some there, in the stands so have overlooked the course but I have never nor will I ever attend the race meeting. 

But I am fascinated to look in and see the build-up. 

It starts around February as you start to see the white hospitality marquees being erected. You get the big advertising wraps proudly displaying the meeting’s sponsor. Then this week the TV outside broadcast vans turn up, signs directing people to the correct car parks and drop off points appear and the sense of the scale of operations looms large. 

Then there are the signs that someone like me trying to go about the ordinary business of the week don’t want to see. Road closures, no parking zones, diversions all being signposted telling me that this week will be challenging. Gone are the days then I was able to easily move house on Grand National day snaking past the ground while the horses hurtled round the course. 

Travelling in early on race day mornings you see the workforce that comes in to support the enjoyment of the many on race day. A small army of mostly young people dressed in the white and black of waiting staff decamp from the early Merseyrail trains heading to set up in readiness for the day’s punters.  

That’s the bit I mostly miss but it is when the community kicks in. Hordes of people in cars, coaches and trains descend on the area and while most are fine I know from friends living in the area that problems of low level anti-social behaviour affect many local residents when high jinks and too much alcohol spill over to a lack of self-control. And potentially a lack of respect with the notion that my enjoyment trumps anyone else’s rights. 

To be fair I see this type of things coming out of a gig. The moment the house lights go on the crowd that had not minutes before been singing as one voice to the bands biggest hit become engaged in the understandable desire to get home, to get the car out of the car park. As we boisterously leave the venue hyped up by the adrenalin rush you get from a good gig the signs plea to respect the venue’s neighbours is readily dismissed or overlooked. Of course, that sign doesn’t apply to me. 

Behaviour specialists will have no doubt studied the way this works in more detail and there is some research on how crowds behave which I believe informs safety management. This has got to be a benefit for all. And this may have been how things always were but around these events more and more local communities suffer from the impact of thousands suddenly descending and rapidly disappearing. It is similar to the impetus that has led to a backlash against tourists in cities such as Venice and Barcelona. Yes, these events do bring money into the economy, Taylor Swift’s Anfield concerts brought a great amount of revenue for Liverpool. However, a question would have to be how much that benefits the communities that take the brunt. 

The Grand National is big but not unique. And I hope the hundreds of thousands who visit have a tremendous experience but as they do I also hope that they respect the community that they become and the community they land in. 

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