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.  

Article
Comment
Justice
7 min read

Just where does the arc of history bend towards today?

What happens when the optimism bubble bursts.

Roger is a Baptist minister, author and Senior Research Fellow at Spurgeon’s College in London. 

The feet and legs of someone walking on a white rug, beside the words Justice and Government woven in to it,
Obama's Oval Office rug.
The White House, via Wikimedia Commons.

"Yes we can! 

Yes we can! 

Yes we can!"

There was something magical about hearing Barak Obama speak to a crowd. The rhythm of his sentences, the rhyme of his words and the melodic cadence of his baritone delivery had the ability to hold you spellbound. It felt so positive, so uplifting, so inspiring.  

The call and response with the audience only underlined the positivity of the impression: ‘Yes we can!’  

It was listening to Obama that I first heard the quote: 

 ‘The arc of history is long, but it bends towards justice.’ 

I loved it. Obama used it a lot, and so did I.  

It seemed to epitomise the hopefulness his presidency embodied. Implicitly, it advocated the qualities of patience and persistence that are so important in working for a better world. It doesn’t happen overnight. It also acknowledged his rootedness in what had gone before, ‘As Dr King used to remind us …’. Obama was borrowing the line from one of his own heroes. 

In fact, the quote was with him all the time in the Oval Office of the White House, to the right of his desk. Along with four other quotes it was woven into the perimeter of a 23 by 30-foot oval rug that almost filled the room. 

The one-liner still delivers a punch, just as it did for Martin Luther King. However, I am increasingly convinced that it doesn’t stand scrutiny. As much as I want it to be true, and long for it to be true, I do not believe that it is. 

The sentiment was of its time. Not the 1950s and 60s of Dr King, but the 1850s of the Unitarian minister Theodore Parker from Massachusetts. The germ of an idea originated with him in a sermon entitled, ‘Of Justice and the Conscience’. At this point it was a complicated paragraph rather than a pithy one-liner. 

‘You see a continual and progressive triumph of the right. I do not pretend to understand the moral universe, the arc is a long one, my eye reaches but little ways. I cannot calculate the curve and complete the figure by the experience of sight; I can divine it by conscience. But from what I see I am sure it bends towards justice.’ 

Parker was also responsible for ‘government of the people, by the people, for the people’ that Abraham Lincoln would go on to cut and paste into his famous Gettysburg Address during the Civil War. It also appeared on Obama’s rug. 

The intellectual circles of the 1850s were alive with many new ideas like progress, equality and the abolition of slavery, and ‘transmutation’ (or evolution as it would become known). In science, industry and social life things were moving forward and getting ever better. 

As the century moved on this conviction continued to grow and become more widespread. By the early years of the twentieth century Parker’s thought itself had been distilled down into the single line we’re familiar with and included in popularly published collections of aphorisms. 

Prosperity and progress informed the narrative of Western culture and ideas of evolution were imported into other disciplines. In anthropology, for example, this gave rise to ‘social evolutionism’ and the categorisation of societies into a developmental sequence ranging from ‘primitive’ to ‘civilised’.  

Of course, it doesn’t take much imagination to recognise that there was a darker side to such notions. Here was also an underpinning for a colonial worldview and an intellectual justification for racial hierarchy. Western culture was more ‘evolved’.  

These views were epitomised in psychology where, for example, in Freud’s Totem and Taboo (1913) he speaks of indigenous people as ‘the most backward and miserable of savages’, comparing the way they live with features of a neurosis and mental disorder. 

The carnage of the First World War effectively popped the bubble of an overly optimistic ‘progressivism’. I do wonder whether we are now at another ‘bubble popping’ moment in the West. 

Is your ‘bubble of optimism’ in danger of popping, or has it even popped already, like mine? 

In the decades since the Second World War we have succumbed to our own narrative of progress. We have witnessed amazing technological advances and stunning scientific discoveries. The forward movement is obvious, and the promise of an even better future is clear. 

Then, supported and monetised by the market economy, our lives are tempted, enhanced and festooned by the latest products and services that our money can buy. From smart doorbells to wearable tech and TikTok to ChatGPT our world is constantly changing and upgrading and the movement forward is undeniable. 

The narrative runs in our wider life too. We celebrate the triumph of the suffragettes, the defeat of fascism and the collapse of old-school communism. Francis Fukuyama may have been premature declaring the end of the Cold War as the ‘end of history’ in 1989, but it did seem like Western-style liberal democracy was what the world was striving for. 

Then there are the advances in our shared life together in Britain. If Acts of Parliament in some measure illustrate the pulse of the nation, the direction is clear. Take, for example: 

  • the Sexual Offences Act 1967 
  • the Sex Discrimination Act 1975 
  • the Race Relations Act 1976 
  • the Childrens’ Acts of 1986 and 2004 
  • the Disability Discrimination Act 1995  
  • the Human Rights Act 1998 
  • the statutory instruments protecting against discrimination in employment on grounds of religion or belief (2003), sexual orientation (2003) and age (2006) 
  • the Gender Recognition Act 2004 
  • the Equality Act 2010 
  • the Marriage (Same Sex Couples) Act 2013 

This list isn’t exhaustive and there are campaigners who are very keen to add to it. But we live inside this narrative, and we know the plot. It is familiar to us. And it would be so easy to be seduced into a new myth of inevitable progress, ‘The arc of history is long, but it bends towards justice’. 

‘Social evolutionism’ was so deeply embedded in late Victorian culture that its ‘self-evident’ truth went largely unchallenged. The vast majority believed their own hyperbole and complacently embraced the fruits of burgeoning industry and an expanding empire. They lacked the self-critical capacity to comprehend the flaws in their worldview and to understand what their world was capable of in the infernal, apocalyptic catastrophe that was unleashed in 1914. 

Maybe, embracing a more contemporary myth of progress has a similar effect on us. We presume that our way of life will inevitably continue moving forward unchallenged. That we have a right to experience a tomorrow that will always be better than yesterday. And that those who do not subscribe to our notion of ‘progress’ are clearly inferior, ill-informed or backward in some way. But such a mindset also lacks a culturally self-aware and critical edge and is oblivious to how easily things could fall apart. 

At this moment in time the world seems far less secure than at any point in my lifetime. Our community hosts refugees from Ukraine and Hong Kong, a friend has only recently returned from working with a voluntary agency in Israel and I am about to meet up with another friend who has just flown in from the United States.  

Populist, anti-democratic and disruptive forces are more blatantly at work around the world than for many a long year. Developments in AI, cyber-terrorism and digital warfare create a disembodied sense of ‘existential threat’. And then there is the climate crisis. Fires in California, floods in Europe and the unprecedented sequence of six tropical cyclones in the Philippines in late 2024 seem to have had little impact in accelerating the response to global warming. 

Is your ‘bubble of optimism’ in danger of popping, or has it even popped already, like mine? 

Of late I have found helpful insight in observations made by Jesus. Rather than fixating about what might happen in the future, he encouraged those who had attached themselves to him to live in the moment, 

'Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.'  

For those who were concerned about what might be happening and felt the world was falling in around them, he offered reassurance. He counselled that such events did not signal the end of the world. Rather, this was simply the kind of thing that happened.  

'You will hear of wars and rumours of wars, but see to it that you are not alarmed. Such things must happen … these are the beginning of birth pains.'

Rather, the early Christian ethic was rooted in God’s loving, supporting and strengthening presence during unstable times.  

Writing to the Christian community that had formed itself in Rome, the apostle Paul was convinced that whatever befell them – trouble, hardship, persecution, famine, nakedness, danger, or weaponised violence – that nothing would be able to ‘separate us from the love of God that is in Christ Jesus our Lord.’  

And right at the base of this ethic that Jesus advocated was an unswerving commitment to ‘love your neighbour as yourself’ 

Which takes us back to Obama’s rug and the West Wing office. 

On the left-hand side of his desk was a quote from President Theodore Roosevelt: 

'The welfare of each of us is dependent fundamentally upon the welfare of all of us.'

And that really is it. History may not bend towards justice, and hard-won progress we’ve achieved can likewise be lost, but our future will always hang on the ‘welfare of all of us.’  

Well said Mr. President! 

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