I am still super confused why there was apparently no due diligence by the EA leadership, assuming there is such a thing. At least Enron and MtGoX had no one to oversee them. Are they just that gullible? (Also see my question about most places not having a single person responsible for risk assessment and mitigation.) I would assume that rationality spinoffs would pay attention to Bayes and probabilities.
I think approximately no one audits people’s books before accepting money from them. It’s one thing to refuse to accept money from a known criminal (or other type of undesirable), but if you insist that the people giving you money prove that they obtained it honestly, then they’ll simply give that money to someone else instead.
I am still super confused why there was apparently no due diligence by the EA leadership, assuming there is such a thing. At least Enron and MtGoX had no one to oversee them.
Enron was overseen by Arthur Andersen and audited by them.
EA leadership did not have a good way to audit FTX to find out that they have owned user funds to Almeda.
Arthur Andersen, who’s a team of professional analysts who actually has access to the books, seems to me a lot more guilty for failing oversight than people at CEA or other EA orgs.
One would think—unfortunately we humans are really bad at judging our own ability to judge the trustworthiness of other people, even when we know about said bais. If you hire a friend or trusted community leader to do a high-stakes job, many people won’t even bother with an NDA, let alone do any formal investigation into their honesty! Hopefully this will serve as a lesson that won’t have to be repeated...
I am still super confused why there was apparently no due diligence by the EA leadership, assuming there is such a thing. At least Enron and MtGoX had no one to oversee them. Are they just that gullible? (Also see my question about most places not having a single person responsible for risk assessment and mitigation.) I would assume that rationality spinoffs would pay attention to Bayes and probabilities.
I think approximately no one audits people’s books before accepting money from them. It’s one thing to refuse to accept money from a known criminal (or other type of undesirable), but if you insist that the people giving you money prove that they obtained it honestly, then they’ll simply give that money to someone else instead.
Enron was overseen by Arthur Andersen and audited by them.
EA leadership did not have a good way to audit FTX to find out that they have owned user funds to Almeda.
Arthur Andersen, who’s a team of professional analysts who actually has access to the books, seems to me a lot more guilty for failing oversight than people at CEA or other EA orgs.
One would think—unfortunately we humans are really bad at judging our own ability to judge the trustworthiness of other people, even when we know about said bais. If you hire a friend or trusted community leader to do a high-stakes job, many people won’t even bother with an NDA, let alone do any formal investigation into their honesty! Hopefully this will serve as a lesson that won’t have to be repeated...