Review

Comment

Morality

23 November 2023

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 Kandiah

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

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

Freedom of Belief

4 September 2024

6 min read

Experiencing Tbilisi's cold shoulder

Georgia’s warm welcome doesn't extend to refugees fleeing Iran.

Steve Dew-Jones

Steve is news director of Article 18, a human rights organisation documenting Christian persecution in Iran.

On a rainy night a pedestrian, holding a brolly, waits to cross a road.

Tbliisi, Georgia.

Aleksandr Popov on Unsplash.

On the surface, Georgia has a lot going for it: natural beauty, historic sites, lovely food and wine.

It also boasts an extremely free market. Anyone can to set up a business of their choosing within a couple of hours, should they have the wherewithal.

But therein also lies the rub. Life is not so easy for those without such wherewithal - perhaps they don’t have sufficient capital, or vision; a disability prevents them; or they try but fail.

And then life is not so easy in Tbilisi.

My focus on my recent trip to Georgia, as an employee of an Iranian Christian charity, was its small Iranian population - and principally those who have claimed asylum there.

I spoke to several such individuals during my stay, and the conclusion that I reached was that Georgia is a lovely place to live, provided that you: a) have money; and b) are happy not to speak out about sensitive issues.

Which, honestly, sounds eerily like the country from which my Iranian friends fled in the first place.

When he ignored the warnings, the threats escalated. His car was broken into, and someone even came to his church, claiming to have a bomb strapped to himself.

Take Reza, for example, who left Iran eight years ago and came to Georgia in the hope that in a country where nearly 90 per cent are Orthodox Christians, he would be free to practise his chosen faith.

He even set up a church there, and for a while all was good. Until he started getting involved in protests against the regime back in Tehran.

Reza joined demonstrations outside the Iranian embassy in Tbilisi - which is in a lovely area of town, right next to the Russian embassy and also, somewhat awkwardly, that of Ukraine.

He also protested outside the “Ferdowsi Educational Complex” - a Shia school with a sign outside proclaiming it as an entity of the Iranian embassy.

And for these protests, Reza received some, at first, gentle reprimands. He was called by a private number, encouraging him not to take such action again in the future.

When he ignored the warnings, the threats escalated. His car was broken into, and someone even came to his church, claiming to have a bomb strapped to himself.

It was only at this point that Reza decided, against his initial intentions, to claim asylum.

But though the Georgian immigration service eventually acknowledged him to be a Christian - unlike many of his fellow Iranian asylum-seekers - they did not accept that this fact would put him at risk of persecution were he to return home.

To which the only rational response is a wide-open mouth and outstretched arms.

Have the Georgian immigration service not read the news? Do they not know that Christians - and more specifically, evangelical Christians and converts like Reza - face sustained and systematic persecution?

The answer to this question, I was to discover, is two-pronged.

Firstly, there is Georgia’s close relationship with the Islamic Republic, the reason for which, sadly and all too predictably, is of course money.

“Georgia is a small country,” a lawyer who deals with immigration cases like Reza’s told me.

“It’s surrounded by three big countries: Russia, Turkey and Iran, and can’t afford to have bad relations with all of them.”

Both Russia and Turkey have history of seeking to occupy Georgia, while Russia has made no secret of its hope of re-establishing the territories it once held, including, one presumes, Georgia.

In this context, it is little wonder that little Georgia does not feel able to cast aside so lightly its relationship with its third mega-neighbour, Iran.

And when an Iranian claims asylum in Georgia - on whatever grounds - what message would it send for the Georgian government to recognise that claim?

In the case of Christians like Reza, the message would clearly be that Iran persecutes Christians, which is an uncomfortable reality for a close ally of Iran to publicly admit.

You can search his name on Google, in both English and Persian, and it’s safe to say that what you would find would not please the Islamic Republic.

The second prong at play, meanwhile, which is equally uncomfortable to speak about, is the reality that in general Georgia’s Orthodox Christians tend to share some of Iran’s ill-feeling towards evangelicals.

“They think of us the same way as Jehovah’s Witnesses,” Reza explained.

“A Georgian friend of mine accused me three times of being a spy for America,” another convert told me.

Another, whose case was rejected because Georgia’s immigration service did not accept he was a Christian, told me the questions he was asked in his interview related only to elements of the Orthodox faith, about which he had no idea.

And when this individual sought to explain his own reasoning for his deeply held faith - for which he was arrested in Iran - they told him he could only answer the questions posed.

And so he said that he could not. And so they rejected his claim, declaring that it had not been established that he was a Christian.

An easy win.

I could focus now on the particular challenges faced by asylum-seekers who are unfit to work - two of whom I met, and who receive no support from the state - but I would like to close with one final example which I think highlights the absurdity of the situation.

And that is the example of Behzad Asiaie, an Iranian whose claim for asylum was based on his political activity and not his faith, although he has since converted to Christianity - for which he blames Reza, as, no doubt, would the Iranian and dare I say even Georgian government.

The striking thing about Behzad’s case is that it’s extremely well documented. You can search his name on Google, in both English and Persian, and it’s safe to say that what you would find would not please the Islamic Republic.

For one thing, Behzad has already spent a year in Tehran’s Evin Prison for his activism. Added to that, since arriving in Georgia five years ago, with no intention to claim asylum, he started a new activist group called Hamrasho (which means “all together”), which has organised protests about various things outside the edifices of the Islamic Republic in Tbilisi.

As part of the protests, which is where Behzad met Reza, Behzad even filmed himself burning images of Iran’s Supreme Leader, and published it on social media.

So, when the Georgian government rejected his eventual asylum case and told him that they didn’t think he would have any problem were he to return to Iran, the jaw really must drop open.

My conclusion upon leaving Georgia was that it really is a lovely country - provided that you have money and don’t make too much noise.

I put this perspective to a Russian couple, who I met on my last night in town, and they - like Reza and Behzad before them - nodded in agreement.

For they, like my Iranian friends, are exiles, having fled Russia because they are against Putin’s war.

They told me they know of no other Russians among the thousands in Tbilisi who support Putin’s war, but nor do they know any who would be foolish enough to protest about it - whether back home, or outside the Russian embassy in the lovely Vake district of Tbilisi.

I penned this article on my last night in Georgia in a Ukrainian restaurant housed roughly between the two edifices of the Islamic Republic of Iran, which felt about right.

The entire restaurant is painted in the colours of the Ukrainian flag; the Wifi name is “Slava Ukraine”; and the password, I was told, translates as “super slava”.

Which seems to be about the loudest protest that one can get away with in Tbilisi.