I think it is very important to understand what was known about SBF’s behaviour during the initial Alameda breakup, and for this to be publicly discussed and to understand if any of this disaster was predictable beforehand. I have recently spoken to someone involved who told me that SBF was not just cavalier, but unethical and violated commonsense ethical norms. We really need to understand whether this was known beforehand, and if so learn some very hard lessons.
It is important to distinguish different types of risk-taking here. (1) There is the kind of risk taking that promises high payoffs but with a high chance of the bet falling to zero, without violating commonsense ethical norms, (2) Risk taking in the sense of being willing to risk it all secretly violating ethical norms to get more money. One flaw in SBF’s thinking seemed to be that risk-neutral altruists should take big risks because the returns can only fall to zero. In fact, the returns can go negative—eg all the people he has stiffed, and all of the damage he has done to EA.
I think it is very important to understand what was known about SBF’s behaviour during the initial Alameda breakup, and for this to be publicly discussed and to understand if any of this disaster was predictable beforehand. I have recently spoken to someone involved who told me that SBF was not just cavalier, but unethical and violated commonsense ethical norms. We really need to understand whether this was known beforehand, and if so learn some very hard lessons.
It is important to distinguish different types of risk-taking here. (1) There is the kind of risk taking that promises high payoffs but with a high chance of the bet falling to zero, without violating commonsense ethical norms, (2) Risk taking in the sense of being willing to risk it all secretly violating ethical norms to get more money. One flaw in SBF’s thinking seemed to be that risk-neutral altruists should take big risks because the returns can only fall to zero. In fact, the returns can go negative—eg all the people he has stiffed, and all of the damage he has done to EA.
Are you in a position to be more specific about what SBF did that this is referring to?
no