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For Australian philosopher Peter Singer, the fraud charges against Sam Bankman-Fried represent a fatal blow to effective altruism, the philanthropy championed by the founder of the FTX cryptocurrency exchange. not.
Singer, who some have called the father of effective altruism, said it could lead to a move to rethink our relationship with billionaires, our relationship with cryptocurrencies.
Will this lead to long-term reputational damage? I think the answer to that is no.
However, it was triggered by the arrest of Bankman-Fried, who alleged that US federal prosecutors “devised a scheme and ruse to deceive FTX customers.” some speculation What Scandals Can Cause severe damage to the controversial and effective altruistic philanthropy. Bankman-Fried was also one of his biggest donors, so the flow of funds dried up.
Singer believes there is no “direct connection” between Bankman-Fried being accused of being effective altruism. Questions definitely raised As to the connection between Bankman-Fried’s alleged conduct and the movement itself.
The founder and director of the UK-based think tank Why Philanthropy Matters sees Bankman-Fried’s involvement in effective altruism as “an absolute core part of the story.”
“The fact that Sam Bankman Freed was an effective altruist is detrimental to effective altruism because it doesn’t seem to accompany the whole story and what happened. [with] FTX, said Rhodri Davies.
As the effective altruism group Giving What We Can explains, the movement is based on “using evidence and careful reasoning to find the best ways to do things with limited resources.”
So the core idea is that when trying to do good in the world, especially when donating to charity, people should not focus on what they think is important or what they want to do.
For example, does it make sense to donate money to local charities like food banks? Will it be better spent towards something with greater impact and cost-effectiveness, like buying a mosquito net for your home?
“[The idea is] You have to detach yourself from things, be completely neutral about the cause, and think, ‘How can I do the best thing in the world with the money I have,'” Davis said.
However, the idea of effective altruism has also been criticized for being too utilitarian or consequentialist, and accused of prescribing a philosophy that justifies ends-means.
“I think the story that’s on a lot of people’s minds right now is that he pushed that idea to its limits and beyond. [alleged] It’s fraud and kind of corporate malfeasance,” Davis said.
The U.S. government has indicted Samuel Bankman-Fried, the founder of now-defunct cryptocurrency exchange FTX, for numerous financial crimes after being arrested in the Bahamas. If convicted, he faces decades in prison.
The movement has also been criticized for being arrogant for suggesting that effective altruists can decide which charities are most deserving of donations.
“Basically, we’re a bunch of very smart philosophy graduates who know the world’s problems and how to solve them. So very top-down,” Davis said.
Leslie Renkowski, emeritus professor of public affairs and philanthropic studies at Indiana University, said effective altruism creates virtue out of arrogance.
“If I could spend a million dollars, I would invest it in something that would change the world. But the truth of the matter is, I don’t know what it is. The world is a pretty complicated place.” and there is not a single button that can be pressed.”
He said the allegations against Bankman-Fried raise major questions about the ethical nature of the movement.
Effective altruism, at least initially, advocated that people should seek well-paying jobs rather than work for NGOs, and that the money should go to charity. Target.
Cryptocurrency analyst David Gerald describes FTX as a clown financial institution holding many fictitious assets. FTX founder Sam Bankman-Fried has been charged with eight crimes after the company’s demise.
“Bankman-Fried followed one of the principled prohibitions to go and make money if he had the ability to do so, rather than join a non-profit organization or pursue a social cause.” After you make a mountain, you can give it later.”
“If he was actually doing something illegal on purpose, he was trying to justify it, because it was for charity. This is central to effective altruism.” It raises major ethical questions about its premise.
However, Singer suggested that the fact that Bankman-Fried was facing serious fraud allegations meant he was acting “much less rationally” than effective altruism. says that
“To do something this blatant and obviously carry a significant risk of being in prison for a long time… I mean, it’s pretty crazy,” he said. “And I don’t think there is anything about effective altruism that says it should.”
Singer has been called the intellectual father of effective altruism, but the movement itself was co-founded by Scottish philosopher William MacAskill as an Oxford student in 2009. inspired by work of a singer.
MacAskill himself tweeted shortly after news of the FTX scandal broke, saying, “For years, the EA community has stressed the importance of honesty, integrity, and respect for common sense moral constraints.” Did.
“If customer funds were misused, Sam would not listen. He must have thought he was beyond such considerations.”
Singer believes the effective altruism movement has done a lot of good, and hopes it will continue to do even more.
FTX founder Sam Bankman-Fried, once dubbed the King of Crypto, has spoken out on video for the first time since his crypto exchange suddenly went bankrupt, refuting fraud allegations.
However, he admitted that the fact that billions of dollars that would have been spent on effective altruistic efforts now “disappeared in smoke” was “pretty awful.”
Bankman-Fried reportedly became interested in effective altruism after a luncheon with MacAskill about a decade ago, according to Forbes. He entrusted a lieutenant to oversee Future Fund grants. Launched in February, the fund is believed to be a subsidiary of the FTX Foundation.
However, donations made by the Future Fund could be recaptured by FTX creditors in bankruptcy court, reports Forbes.
MacAskill is currently under attack from many of the effective altruistic communities.
I think the recent FTX scandal has had a huge impact on the trust that many in the EA community have in our leadership. I have written Gideon Futtermann small non-profit organization Forbes reported receiving funding from the Future Fund on a community forum.
Singer, however, remained optimistic about the future of the effective altruism movement.
“I think it’s well established and well known by now. Very large donations to very effective charities. It’s all good. Despite the fall of FTX , I think it will continue.”
