FTX collapse raises hard questions about the ‘effective altruism’ movement

The collapse of cryptocurrency exchange FTX

into bankruptcy and the resignation of its high-profile chief executive Sam Bankman-Fried earlier in November put the spotlight on an already wobbly cryptocurrency industry. However, there is another, quite different aspect to the exchange’s implosion as well – its unsalutary effect on philanthropies and non-profit organisations.

This is because the young tech entrepreneur was a card-carrying proponent of what is called “effective altruism” (EA) – where making vast sums of money is seen as noble if it is to be used for a greater good. (Mr Bankman-Fried had set up a philanthropic infrastructure through FTX which promised a certain percentage of its crypto exchange fees would be donated to charities.)