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.
Wait, if now isn't the time to be specific about what actions we actually condemn and what actual ethical lines to draw, when is it? Clearly one of the primary things that this post is trying to communicate is that Rethink condemns certain actions at FTX. It seems extremely important (and highly deceptive to do otherwise) to be accurate in what it condemns, and in what ways.
Like, let's look ahead a few months. Some lower-level FTX employee is accused of having committed some minor fraud with good ethical justification that actually looks reasonable according to RP leadership, so they make a statement coming out in defense of that person.
Do you not expect this to create strong feelings of betrayal in previous readers of this post, and a strong feeling of having been lied to? Many people right now are looking for reassurance about where the actual ethical lines are that EA is drawing. Trying to reassure those people seems like one of the primary goals of this post.
But this post appears to me be basically deceptive about where those lines are, or massively premature in its conviction on where to make commitments for the future (like, I think it would both have quite bad consequences to defend an individual who had committed ethically justifiable fraud, and also a mistake to later on condemn that individual because I guess RP has now committed to a stance of being against all fraud, independently of its circumstances, with this post written as is).
I think one of the primary functions of this post is to reassure readers about what kind of behavior we consider acceptable and what kind of behavior we do not consider acceptable. Being inaccurate or deceptive about that line is a big deal. I think indeed being accurate about those lines is probably the most important component of posts like this, and the component that will have the longest-ranging consequences.
There is of-course an easy way out, which is to just express uncertainty in where the ethical lines are, or to just not make extremely strong statements about where the lines are in the first place that you don't believe. I think we are still learning about what happened. Holden's post and ARC's posts for example do not strike me as overstepping what they believe or know.