Crypto, Chaos, and the Cult of Effective Altruism: The Philosophy Behind FTX

How Good Intentions and Utilitarian Math Shaped—and Shattered—a Crypto Empire

Few business stories are as deeply entwined with philosophy as that of FTX. In 'Going Infinite', Michael Lewis unpacks how Sam Bankman-Fried’s obsession with effective altruism—a movement dedicated to maximizing positive impact—became both the engine of FTX’s rise and the root of its downfall. From the beginning, SBF and his team filtered every major decision through the lens of expected value: would this action, however risky, do the most good for the most people?

This utilitarian approach attracted a tribe of like-minded idealists, many of whom were recruited not just for their skills, but for their commitment to the cause. The result was a culture that prized ambition, speed, and impact above all else. Yet, as Lewis shows, this same culture led to ethical blind spots. When the pressure to maximize good collided with the messy realities of business, corners were cut and risks rationalized away. Decisions about layoffs, investments, and even personal relationships were often reduced to cold calculations—a process that left some employees inspired, and others deeply uneasy.

The collapse of FTX exposed the limits of this philosophy. As billions evaporated and lives were upended, the question became not just what went wrong, but whether the pursuit of impact can ever justify the means. Lewis’s narrative is a powerful reminder that ideals, however noble, must be tempered by humility, empathy, and a willingness to confront uncertainty.

For business leaders, investors, and philosophers alike, the FTX saga is a cautionary tale: even the best intentions can go awry when detached from practical wisdom and ethical safeguards. 2 3