FTX Collapse Deals Blow to Effective Altruism Movement

Effective altruism is a philosophy that aims to maximize charitable impact by making data-driven decisions. It advocates earning to give - choosing high-paying careers to maximize donations.

Sam Bankman-Fried espoused effective altruism, claiming he wanted to make money to donate to effective causes. But FTX's collapse has damaged the movement's reputation.

Effective altruism has roots in philosophy and has been embraced by some in Silicon Valley as a way to demonstrate ethics. But critics say it can ignore human nuance.

The movement has had some real successes, like raising billions for malaria prevention. But the focus has shifted away from immediate crises toward more abstract goals.

Bankman-Fried's downfall revealed flaws in effective altruism, like underestimating how environment shapes motivations. Some now see him as an embarrassment.