From the Executive Team and Board of Directors of Rethink Priorities (Peter Wildeford, Marcus Davis, Abraham Rowe, Kieran Greig, David Moss, Ozzie Gooen, Cameron Meyer Shorb, and Vicky Bond).
We were saddened and shocked to learn about the extremely serious alleged misdeeds and misconduct of Sam Bankman-Fried and FTX. While we are still trying to understand what happened and the consequences of these events, we are dismayed that customer funds may have been used improperly, and that, currently, many customers are unable to retrieve funds held by FTX. We unequivocally and in the strongest possible terms condemn any potential fraud or misuse of customer funds and trust that occurred at FTX. The actions that Bankman-Fried and FTX have been accused of are out of line with the values that we believe in and try to represent as an organization.
At this time, Rethink Priorities remains in a stable financial and legal position. We do not plan on laying off staff or cutting salaries in response to these events or to the changed financial condition of the EA space. However, the strategies of our General Longtermism, Special Projects, and Surveys teams were partly based on the existence of FTX funding for Rethink Priorities and others in the EA community. For the time being, we've mainly paused further hiring for these programs and are revisiting our strategies for them going forward. We’ve decided that hiring for our Special Projects team, which was already in progress before we learned about the FTX situation, will proceed in order to evaluate and onboard new fiscal sponsees.
Unfortunately, this situation does impact our long-term financial outlook and our ability to keep growing. Rethink Priorities continues to have large funding needs and we look forward to sharing more about our plans with the community in the next few days. We will need to address the funding gap left by these changed conditions for the coming years.
In terms of legal exposure, Rethink Priorities’ legal counsel are looking into the possibility of clawbacks of funds previously donated to us by FTX-related sources. At this time, we are not aware of any other significant legal exposure for Rethink Priorities or its staff.
Prior to the news breaking this month, we already had procedures in place intended to mitigate potential financial risks from relying on FTX or other cryptocurrency donors. Internally, we've always had a practice of treating pledged or anticipated cryptocurrency donations as less reliable than other types of donations for fundraising forecasting purposes, simply due to volatility in that sector. As a part of regular crisis management exercises, we also engaged in an internal simulation in August around the possibility of FTX funds no longer being available. We did this exercise due to the relative size and importance of the funding to us, and the base failure rates of cryptocurrency projects, not due to having non-public information about FTX or Bankman-Fried.
In hindsight, we believe we could have done more to share these internal risk assessments with the rest of the EA community. Going forward, we are reevaluating our own approach to risk management and the assessment of donors, though we do not believe any changes we will make would have caught this specific issue.
As mentioned above, Rethink Priorities is receiving legal advice on clawbacks, and we are happy to share resources with other organizations that are concerned about their exposure. We cannot provide legal advice, but we are able to provide information on our own response—please reach out to Abraham Rowe (abraham@rethinkpriorities.org) for more information.
RP's statement is inherently a Public Media Statement, and the portions condemning certain events at FTX should be evaluated with that in mind. I think it is quite clear that RP was not intending to make a statement about hypothetical "minor" events at FTX that might be technically fraud, or that most readers would understand them as having done so.
To be clear, Public Media Statements should be as accurate as possible -- but the medium informs the message and limits the writer's ability to convey nuance, full depth of meaning, and high degrees of accuracy. The same is true of explaining things to a five-year old; trying to cram in high degrees of technical accuracy or nuance can often interfere with the goals of the communication and make it less accurate.
For instance, I suggest that one of the rules of Public Media Statements is that media outlets will quote a small portion of them, and that quote will be the main way the statement is experienced by readers. So each sentence that a journalist could reasonably quote needs to independently be a reasonably good representation of the organization's opinion. Or the journalist may craft a short summary of the statement -- so the writer needs to place a premium on making sure a reader does not get the wrong impression. And all of this needs to be done in a compact manner. These features significantly limit the range and accuracy of what can be reasonably conveyed via Public Media Statement. So a statement designed for maximum accuracy attainable under the framework of Public Media Statements may not be viewed as maximally accurate when evaluated under the norms for EA Forum Posts.
Furthermore, it is important to consider the extent to which a Public Media Statement accurately conveys the affective stance of the writer in addition to their cognitive stance. "We disapprove of any events at FTX that were fraudulent and caused depositors to lose their money" is cognitively safe -- but its mildness is probably inaccuate in conveying how RP feels about those events. Again, this is limited by the nature of Public Media Statements -- it isn't viable to set up a 10-point scale of ethical lapses and then explain how strongly one feels about the known FTX ethical lapses by reference to that scale and why.
Again, I appreciate the focus on being as accurate as possible -- I just think we have to consider a statement's accuracy in light of the limitations of the medium in which it was expressed, and that attempting to add too much nuance/precision can cause us to less accurately convey the intended meanings in some cases.