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Thoughts on the FTX situation
webeaforchristians.org·eaforchristians.org/blog/thoughts-on-the-ftx-situation
Published in late 2022 following the FTX collapse, this piece from EA for Christians offers a religiously-grounded perspective on the ethical and reputational fallout for the effective altruism community, relevant for understanding EA's internal reckoning with the scandal.
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Summary
A reflection from the EA for Christians community on the FTX collapse and Sam Bankman-Fried's fraud, examining what it means for the effective altruism movement and how Christians within EA should process the ethical failures involved. The piece likely explores lessons about integrity, the dangers of consequentialist reasoning taken to extremes, and maintaining moral grounding.
Key Points
- •Addresses the FTX collapse and its implications for the effective altruism movement from a Christian perspective
- •Examines how utilitarian or consequentialist frameworks may have contributed to ethical failures at FTX
- •Encourages EA-aligned Christians to reflect on the importance of character and integrity alongside outcome-focused giving
- •Considers how the scandal affects trust in EA institutions and longtermist funding
- •Offers a faith-based lens for evaluating ethical failures within philanthropic and social impact communities
Cited by 2 pages
| Page | Type | Quality |
|---|---|---|
| FTX Future Fund | Organization | 60.0 |
| FTX | Organization | 74.0 |
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# Thoughts on the FTX situation
[EA Movement](https://www.eaforchristians.org/blog/category/EA+Movement)
14 Nov
Written By [Vesa Hautala](https://www.eaforchristians.org/blog?author=66200b0d532a0c0db9a8b5f9)
**_by Vesa Hautala_.**
**Note: this post does not present a stance by Effective Altruism for Christians. This blog publishes posts by multiple authors. The views contained in the posts may sometimes be contradictory and do not necessarily reflect the views of Effective Altruism for Christians.**
The Effective Altruism community has been shocked by news about the bankruptcy of cryptocurrency exchange company FTX. Sam Bankman-Fried, the company’s former CEO, had built a $23 billion fortune and dedicated billions worth of funding to EA. He set up the FTX Future Fund that distributed grants to longtermist causes. Now FTX is being accused of engaging in fraudulent practices. The company collapsed last week and Bankman-Fried's net worth plummeted. Along with FTX and Bankman-Fried’s wealth, billions of funding committed to EA causes is gone. The board of FTX Future Fund, which included William MacAskill among others, [resigned](https://forum.effectivealtruism.org/posts/xafpj3on76uRDoBja/the-ftx-future-fund-team-has-resigned-1) on November 10th. Exact details will be known later (if ever), but the allegation is that FTX used customer deposits in a questionable way against its own terms of service.
For many EAs this is a crisis of trust. Sam Bankman-Fried was involved with EA from early on and for a while he [worked for CEA](https://nymag.com/intelligencer/2021/02/sam-bankman-fried-biden-donor.html) before starting his crypto companies and was a [self-described utilitarian](https://www.utilitarianism.com/sam-bankman-fried.html). He [publicly stated](https://www.nytimes.com/2022/10/08/business/effective-altruism-elon-musk.html) he wanted to donate his fortune to impactful causes and often appeared in photos wearing a t-shirt with the EA logo. He had a reputation as the “ [most generous billionaire](https://www.youtube.com/watch?v=pVlkFW43820)”.
### Humility in Light of Sinfulness
From a Christian perspective, the allegations against Sam Bankman-Fried and FTX serve as a reminder about the importance of humility. If the alleged wrongdoing happened, it would not be surprising in the big picture, since humans are sinful. No moral philosophy or commitment to philanthropy nullifies this fact. Saying you are acting based on EA motivations (or actually acting based on EA motivations) does not make you immune to sin. This fundamental flawedness is an ever-present reminder to stay humble and vigilant – starting with yourself and your own organisation.
If prominent people engage in wrong actions, Christian EAs may find some comfort in remembering the Biblical exhortation, “Do not put your t
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