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The SBF Scandal: The Players and the Money

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From the Brownstone Institute

BY Jeffrey A. TuckerJEFFREY A. TUCKER

The complexities of the FTX scandal with Sam Bankman-Fried at the helm boggles the mind. Unlike the Madoff scandal, which was incredibly simple, the funding, influence, and political networks sounding the $32 billion collapse of FTX is byzantine by design.

Just have a look at the org chart of the company to get a sense. It’s all the better for avoiding oversight.

What we really need in the months or even years in which it will take to sort all of this out is some kind of key to the major players. What follows is a list which we’ve put together in order of network importance for easy reference. This small effort is made necessary because there seems to be very little attention being given to the entire SBF empire, both in terms of the players with whom he worked and where the money ended up.

It’s nowhere near being a guide to the fullness of the networks of funding and influence, and can only begin to hint at the real story of what was really behind this magic bean factory in the Bahamas. Their operations and networks are deliberately obscure and fan out over many countries, institutions, and individuals. There is a strange silence in the air about the details other than the general observation that Sam Bankman-Fried was up to no good.

And yet there were obviously many people involved. It’s probable that the main point was to fund political causes in a way that gets around federal election law, as the indictment suggests in count eight. However, a close examination of the networks keeps coming back to the strange theme of pandemic planning and support for various methods of controlling the population in the name of controlling infectious disease. Aside from political donations, this was a central concern. What that has to do with a crypto exchange is another matter.

All of which should raise a question given the time of the life of FTX (2019-2022): to what extent was the network surrounding this institution useful in providing back-channel funding support for (and lack of opposition to) the most unprecedented attack on human liberty in our lifetimes? This question applies to both the direct political contributions and the various other donations to institutions and individuals.

Corrections to this list are welcome.

Family

Sam Bankman-Fried: Went to MIT, worked for Centre for Effective Altruism (fundraising 2017) and started Alameda Research in November 2017, and then the crypto trading company FTX two years later, which he ran until 2022 when it all collapsed after becoming the second-largest donor to Democrats ($38M).

Barbara Helen Fried: mother of Sam, Harvard Law graduate, professor at Stanford University, booster of Effective Altruism, and founder of Mind the Gap, a secretive political action committee in Silicon Valley.

Alan Joseph Bankman: father of Sam, Yale Law graduate and later clinical psychologist, law professor at Stanford, and author and expert on tax law.

Linda Fried: Sam’s aunt on his mother’s side and Dean of School of Public Health at Columbia University and on the board of the World Economic Forum’s Global Agenda Council on Aging.

Gabriel Bankman-Fried: Sam’s brother who ran Guarding Against Pandemics, a lobbying organization supporting “pandemic planning” also known as lockdowns and vaccine mandates. It has a Capitol Hill headquarters that cost $3.3 million. He previously served on a Congressional staff.

Associates

Caroline Ellison: Schooled at Stanford, she is daughter of Glenn Ellison and Sara Fisher Ellison, both professors at MIT. She became CEO of Sam’s Alameda Research and reported girlfriend of Sam’s.

Sara Fisher Ellison and Glenn Ellison: Caroline’s mother is professor of economics at MIT with a research specialization in the pharmaceutical industry while her father has written at least four papers on epidemiological modeling.

Nishad Singh: former MIT roommate of Sam’s who is said to have built the FTX platform. He seems to have left the Bahamas for India.

Zixiao “Gary” Wang: Co-founder with Sam of FTX and Alameda. He graduated from MIT and worked for Google. Beyond that hardly anything is known about him. He seems to have left the Bahamas and is reported to be in Hong Kong.

Ryan Salame: Graduate of UMass-Amherst and head of FTX Digital Markets, plus proprietor of R Salame Digital Asset Fund through the Berkshire Taconic Community Foundation, allegedly for charitable purposes.

William David MacAskill: real name Crouch, William is an author and philosopher and founder of the Centre for Effective Altruism and a close colleague of Sam’s. He served on the board of FTX Future Fund until it collapsed. He is a media personality who gives TED talks and is a leader purveyor of the view that one should get very rich and give it away.

Funded Institutions and Individuals (some taken from here)

Together Trial: This elaborate trial of therapeutics ended up inveighing against Ivermectin and Hydroxychloroquine and was generously funded by FTX. But that has been scrubbed from the public website. This is a continuing problem.

Moncef Slaoui: The head of Operation Warp Speed, he received $150,000 from FTX to write SBF’s autobiography, according to a Washington Post investigation.

HelixNano: A vaccine company that claims to be developing mutation-resistant vaccines, which received $10M in funding from FTX Future Fund, according to a Washington Post investigation.

Johns Hopkins Center for Health Security: This institution ran the Event 201 lockdown tabletop exercise in 2019, and received at least $175,000 for a single employee, from FTX coffers. We don’t know the full extent but it was enough for the head of the Center to defend Sam and FTX in public. Nor do we know Alameda Research’s funding reach of this institution.

Guarding Against Pandemics: Run by Sam’s brother Gabriel, this 501c4 gave at least $1M to campaigns in 2022. We do not know how much money Alameda/FTX funneled to this institution. Sam fequently recommend it as a target for charitable giving.

Protect Our Future: run by the two brothers, this PAC gave $28M to candidates in the 2022 cycle. We do not know how much Alameda/FTX gave.

Center for Innovation in Global Health, Stanford University: FTX and its network gave $1.5M to the institution.

ProPublica: A grant of $5M from FTX Future Fund. Other reports say $27 million.

Centre for Effective Altruism: FTX Future fund gift of $14M

Effective Ideas Blog: It promised to pay $1K to good blogs, and its Twitter frequently links to other institutions and individuals in the FTX network. Funded by Future Fund: $900K

Piezo Therapeutics: “Work on technology for delivering mRNA vaccines without lipid nanoparticles with the aim of making vaccines more safe, affordable, and scalable.” FTX gave $1M

Council on Strategic Risks: “a project which will develop and advance ideas for strengthening regional and multilateral cooperation for addressing biological risks.” $400K from FTX

AVECRIS Pte. Ltd: “support the development of a next-generation genetic vaccine platform that aims to allow for highly distributed vaccine production using AVECRIS’s advanced DNA vector delivery technology.” $3.6M from FTX

University of Ottawa: “a project to develop new plastic surfaces incorporating molecules that can be activated with low-energy visible light to eradicate bacteria and kill viruses continuously.” FTX gave $250K

1Day Sooner: “work on pandemic preparedness, including advocacy for advance market purchase commitments, collaboration with the UK Pandemic Ethics Accelerator.” FTX gave $300K.

SAGE: “creation of a pilot version of a forecasting platform, and a paid forecasting team, to make predictions about questions relevant to high-impact research.” FTX gave $700K

Longview: “global priorities research, nuclear weapons policy, and other longtermist issues.” Advisor: William MacAskill. FTX gave $15M

Confirm Solutions: “support development of statistical models and software tools that can automate parts of the regulatory process for complex clinical trials.” FTX gave $1M

Lightcone Infrastructure: “ongoing projects including running the LessWrong forum, hosting conferences and events, and maintaining an office space for Effective Altruist organizations.” FTX gave $2M

Rational Animations: “the creation of animated videos on topics related to rationality and effective altruism to explain these topics for a broader audience.” FTX gift: $400K

Giving What We Can: “to create a world in which giving effectively and significantly is a cultural norm.” FTX gift: $700,000

The Atlas Fellowship: scholarships for talented and promising high school students to use towards educational opportunities and enrolling in a summer program. FTX gift: $5M

Constellation: “support 18 months of operations for a longtermist coworking space in Berkeley.” FIX coughed up $3.9M

Longview Philanthropy: “creating a longtermist coworking office in London.” FTX committed $2.9M

Long Term Future Fund: “longtermist grantmaking.” FTX committed $3.9M

OurWorldinData: graphs and charts portal. FTX committed $7.5M

Institute for Progress: “research and policy engagement work on high-skilled immigration, biosecurity, and pandemic prevention.” FTX was in for $480K. Additional support came from Emergent Ventures, which was modeled on Fast Grants that funded Neil Ferguson’s pandemic modeling at Imperial College London, which seems to have an entangled relationship with the SFB empire, one yet to be fully disclosed.

Conclusion

What is listed above only scratches the surface of the admitted $160 million given out, but the promise had been for fully $1 billion to go to various nonprofits in this network that seems to be supported or even founded in order to receive money from FTX-connected institutions.

We could only list some of the names and a fraction of the dollar amounts. There are many other institutions and names that could be part of this list but we lacked enough documentation to verify for this article. There is still the task of listing all political campaigns that were in receipt of the money as well as the public-relations boosters of the whole effort.

Building off the success of Bill Gates, Sam Bankman-Fried, and his many associates, clearly saw philanthropy as the path to influence, power, and protection. At the same time, many nonprofit organizations saw an opportunity too; to build their own empires through promised millions and billions from a crypto genius in the Bahamas who had an unusual passion for pandemic planning.

For three years, many of us have wondered how it came to be that the critics of lockdowns and mandates were so few and far between. There are surely many explanations but, as usual, it helps fill in the dots to follow the money.

Author

  • Jeffrey A. Tucker

    Jeffrey A. Tucker, Founder and President of the Brownstone Institute, is an economist and author. He has written 10 books, including Liberty or Lockdown, and thousands of articles in the scholarly and popular press. He writes a daily column on economics at The Epoch Times, and speaks widely on topics of economics, technology, social philosophy, and culture.

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Facebook / Meta’s Mark Zuckerberg on the Joe Rogan Experience

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Earlier this week Mark Zuckerberg rocked the world of information with the news that Facebook, Instagram, and his other Meta properties would no longer use third party fact checking groups to censor information.  As the week wraps up, Zuckerberg sits down for an extended conversation with Joe Rogan.  For anyone interested in the world of information, this is a must see / listen.

From the Joe Rogan Experience

Mark Zuckerberg is the chief executive of Meta Platforms Inc., the company behind Facebook, Instagram, Threads, WhatsApp, Meta Quest, Ray-Ban Meta smart glasses, Orion augmented reality glasses, and other digital platforms, devices, and services.

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Facebook’s New Free Speech Policy Shows Business Getting Back to Business

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Reason.com - Free Minds and Free Markets

Big tech seems to be getting out of the censorship business, and it’s about time. After years of increasingly awkward attempts to placate demands from activist groups and the government to suppress allegedly hateful speech and an amorphous category of “disinformation,” Facebook owner Meta is joining X (formerly Twitter) in substituting user-generated community notes on contested posts for top-down muzzling. There’s no doubt that political shifts in the U.S. heavily influenced the rediscovery of respect for free speech. But whatever the reason, we should celebrate the change and work to make it permanent.

Succumbing to Pressure To Censor

“After Trump first got elected in 2016, the legacy media wrote nonstop about how misinformation was a threat to democracy,” Meta CEO Mark Zuckerberg announced in a January 7 video. “We tried in good faith to address those concerns without becoming the arbiters of truth. But the fact-checkers have just been too politically biased and have destroyed more trust than they’ve created, especially in the U.S.”

“What started as a movement to be more inclusive has increasingly been used to shut down opinions and shut out people with different ideas, and it’s gone too far,” he added.

The implication here is that Zuckerberg and company succumbed to pressure to suppress speech disfavored by the bien pensant class, but rather than satisfying critics, that just fed demand to memory-hole ever more discussion and ideas. The ranks of those demanding that Facebook act as a censor also expanded and became more ominous.

“Even the U.S. government has pushed for censorship,” Zuckerberg noted. “By going after us and other American companies, it has emboldened other governments to go even further.”

This isn’t the first time the Meta CEO has cited government pressure to act as an end-run around the First Amendment’s protections for speech. In an August 26, 2024, letter to the House Judiciary Committee, he revealed that “senior officials from the Biden administration, including the White House, repeatedly pressured our teams for months to censor certain COVID-19 content, including humor and satire.” He also admitted to suppressing reports about Hunter Biden’s laptop at the FBI’s request.

Succumbing to Pressure for Free Speech

By the time of that letter, the backlash against social media censorship was well underway. Elon Musk’s purchase of Twitter (now X) led to the publication of the Twitter files, revealing government pressure on the platform to suppress dissenting ideas. The Facebook files revealed the same of Zuckerberg’s company. U.S. District Court Judge Terry Doughty wrote that government pressure on tech platforms “arguably involves the most massive attack against free speech in United States’ history.” These revelations vindicated complaints by critics of pandemic policy, conservatives, libertarians, and other dissenters that their efforts to communicate were being deleted, shadow-banned, and otherwise censored.

As early as 2020, Pew Research pollsters found “roughly three-quarters of U.S. adults say it is very (37%) or somewhat (36%) likely that social media sites intentionally censor political viewpoints that they find objectionable.”

Which is to say, tech companies’ efforts to escape pressure over allowing users to publish “misinformation” wildly backfired. They came under more pressure than ever from those who objected—often rightly—that they were just trying to share information that others didn’t like.

If pressure led to censorship, it has also led to its reversal. That’s especially clear as Republicans pushed to allow lawsuits over online muzzling and then-candidate (now President-elect) Donald Trump thuggishly threatened Zuckerberg with “life in prison” for his company’s activities.

Zuckerberg even acknowledges bowing to shifting political winds, saying, “the recent elections also feel like a cultural tipping point towards once again prioritizing speech.”

Whatever Mark Zuckerberg’s actual beliefs about freedom of speech, having once given in to political pressure to censor, he’s now succumbing to political pressure to end censorship. As journalist and date-cruncher Nate Silver puts it, “perhaps it’s the right move for the wrong reasons.” It’s quite likely that the Meta CEO’s motivations are pragmatic rather than principled. But at least he’s making the right move.

Zuckerberg now says he’ll follow in the footsteps of Elon Musk, who was the first tech tycoon to push back against pressures for censorship, first in public statements and then in his acquisition of Twitter.

“First, we’re going to get rid of fact-checkers and replace them with community notes, similar to X, starting in the U.S.,” he noted in his video statement. He also promised to get rid of restrictions on “topics like immigration and gender” that were previously subject to scrutiny for alleged wrongthink, focus the attention of automated filters on explicitly illegal content rather than general discourse, and stop deemphasizing political content. Facebook will also move its moderation teams out of the ideological hothouse of California to Texas—arguably just a different ideological hothouse, though one better aligned with a country that just voted as it did and generally favors free speech over Big Brother.

Meta Joins Other Companies, Steps Back from Political Alliances

In backing away from a default affiliation with one faction of American politics as well as the government, Zuckerberg joins not just Musk but also executives at other companies who are jettisoning brief flirtations with trendy causes.

“Walmart is ending some of its diversity programs, the latest big company to shift gears under pressure from a conservative activist,” The Wall Street Journal’s Sarah Nassauer reported in November. The article attributed the shift to public pressure which “has successfully nudged other companies including retailer Tractor Supply and manufacturers Ford and Deere to back away from diversity efforts and other topics.”

That report came after the election put Republicans back on top, but the cultural winds had already shifted direction. Bloomberg reported in March that “Wall Street’s DEI retreat has officially begun.” A few months later, the financial news service noted a decline in interest in environmental, social, and governance investment guidelines associated, like DEI, with the political left.

As in Zuckerberg’s case, it’s not obvious that the business executives in question had a sincere commitment to the causes they now reject, or that their principles, should they have any, have changed. Instead, they seem to belatedly recognize that allying with one faction in a divided society inevitably alienates others. That’s dangerous when the fortunes of factions inevitably rise and fall, and when potential customers can be found across the political spectrum.

By taking their companies out of the political fray and acknowledging their customers’ right to disagree with one another and with the government, Mark Zuckerberg and other business leaders can leave us room to work out our differences in a free society without worrying so much whether the people to whom we give our money are friends or foes.

 

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