The relationship between Sam Bankman-Fried and Caroline Ellison raises psychological questions about how this contributed to FTX’s downfall. One psychologist says FTX’s downfall isn’t about money, but an ‘addictively strong chance to beat the system’. According to him, Bankman-Fried and Ellison probably used the charity as a cover.
Caroline Ellison and the Bankman-Fried relationship
As you follow on Kriptokoin.com, FTX, of which Sam Bankman-Fried (SBF) is the CEO, collapsed dramatically. Allegedly, SBF and its team sank $32 billion in user funds. Meanwhile, the outlines of the decline are not yet fully clear. However, the catastrophic collapse of FTX caused a massive contagion in the crypto ecosystem. Spotlight has now expanded from SBF to Caroline Ellison, who as co-CEO of FTX’s sister firm Alameda allows risky bets with client funds. Caroline Ellison and Bankman-Fried have much more in common than the extraordinary MIT frenzy.
The SBF recently told the New York Times that she and Ellison are no longer together. Thus, she confessed her love for a boardroom. Meanwhile, a Tumblr post by Ellison was potentially sarcastic. Ellison says his experience with polygamy convinced him that “everyone should have a rank of partners.”
FTX: Power-dependent voyeuristic geniuses
The perspective took a voyeuristic turn in a CoinDesk report. He claimed that Caroline Ellison and SBF had a close relationship with 10 of her roommates. But more importantly, it raises psychological questions about how all this fueled FTX’s downfall. Psychologist Nadja Bester makes the following analysis:
Psychologically, the motivations behind committing a crime such as financial fraud vary. Therefore, we need to examine the emerging situation from a systemic perspective. Bankman-Fried and Ellison both had educated, high-income childhoods. So, the deliberate actions that led to FTX and Alameda’s downfall probably stemmed more from their view of it as an addictively strong chance to opportunistically beat the system rather than financial need.
“It is a system that positions them as strong creative players due to the scale and impact of their companies’ involvement in the industry,” Bester adds. She is currently writing a book about the psychological drivers operating in the web3 industry. The idea of a transformative boardroom with risk-focused and mutually friendly executives merges uncannyly with Ellison’s vision of fiercely competitive polygamy.
Caroline Ellison, the quiet, knowledgeable daughter of MIT economics professors, immersed herself in traditional learning from an early age that she got bored when she went to college. She has dealt with extreme ethics of the evolutionary kind. This ensured that his corner was not completely abandoned after he fell out of favor. The far-right micro-bloggers who bought Ellison’s college posts on race science and imperialism emerged overnight as his loyalists.
According to a recent Forbes report, some of her advocates, calling her ‘Queen Caroline’, are followers of Curtis Yarvin, a neo-reactionary political theorist and lover of the far-right. They think Ellison is the ‘falling person’.
By the way, the collapse of FTX has also impacted the NFT space. However, rare NFTs have been able to somehow resist the downturn.
Organized crime behind effective altruism
Bester also comments that Bankman-Fried and Ellison may have begun to commit crimes by concealing their charity work. He explains this comment as follows:
If we consider historical examples of dangerous couples, whether violent or large-scale corporate crime, there is a clear pathological link in relationships that negatively impacts the protection of local or international communities. The FTX crash is being touted by some as the result of an inexperienced executive team. However, conceiving a crime of this magnitude is more indicative of an organized crime profile than unorganized criminal profiles.
According to Bester, they used the philosophy of effective altruism as a Trojan horse to hide their misunderstandings that paralyzed the industry. This is just one such example.
“The sexual revolution was a mistake,” says Caroline Ellison of the unsigned college-era Tumblr blog WorldOptimization. Ellison thinks women are better suited to be housewives and raise children than to pursue careers. S
he also believes that “there are scientifically proven genetic differences between human groups,” she says. Caroline Ellison was on her way to accomplishing the most “cute kid thing” of “controlling the biggest world governments”. Her boyfriend, SBF, took second place among the funders of the Democrats’ campaign in the last election.
Gamblers in love: Caroline Ellison and SBF
Recent events have surrounded gambling lovers Ellison and SBF’s claim of effective sacrifice. A former Alameda employee said, “All their goals were to maximize wealth. They never lived in a world where they didn’t take so many risks,” she says.
Still, Bankman-Fried admitted to using philosophy as a cover for speculative accumulation. His ex-girlfriend Ellison sarcastically changed the name of her blog to ‘Fake Charity Nerd Girl’. The demise of FTX was a major setback for the crypto market. Moreover, it never fully recovered from May’s Terra collapse.
There is no way to measure the extent of the damage. Is it possible for future crypto investors to choose not to use crypto exchanges to protect their assets? “The probability of this happening has temporarily increased due to the FTX fallout,” says Robert Quartly-Janeiro, chief strategy officer at crypto exchange Bitrue.