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Culture War Roundup for the week of November 14, 2022

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This is flogging the FTX crash horse, which if not expired yet is certainly not in the best of health, but I'm currently reading the Chapter 11 declaration by the guy put in charge of putting Humpty Dumpty back together again, and it is prime entertainment.

He is not impressed with how FTX and its web of companies was run, and he makes no bones about it. The recurring refrain all through is "However, because this balance sheet was produced while the Debtors were controlled by Mr. Bankman-Fried, I do not have confidence in it, and the information therein may not be correct as of the date stated" for all the balance sheets he's quoting. He was the guy put in to handle Enron when it was wound up, and he says (reading between the lines and you don't need to do much of that) that the FTX mess is even worse than that:

I have over 40 years of legal and restructuring experience. I have been the Chief Restructuring Officer or Chief Executive Officer in several of the largest corporate failures in history. I have supervised situations involving allegations of criminal activity and malfeasance (Enron). I have supervised situations involving novel financial structures (Enron and Residential Capital) and cross-border asset recovery and maximization (Nortel and Overseas Shipholding). Nearly every situation in which I have been involved has been characterized by defects of some sort in internal controls, regulatory compliance, human resources and systems integrity.

Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.

He throws shade everywhere:

The FTX.com platform grew quickly since its launch to become one of the largest cryptocurrency exchanges in the world. Mr. Bankman-Fried claimed that, by the end of 2021, around $15 billion of assets were on the platform, which according to him handled approximately 10% of global volume for crypto trading at the time. Mr. Bankman-Fried also claimed that FTX.com, as of July 2022, had “millions” of registered users. These figures have not been verified by my team.

(Translation: Bankman-Fried is a lying liar)

The FTX Group received audit opinions on consolidated financial statements for two of the Silos – the WRS Silo and the Dotcom Silo – for the period ended December 31, 2021. The audit firm for the WRS Silo, Armanino LLP, was a firm with which I am professionally familiar. The audit firm for the Dotcom Silo was Prager Metis, a firm with which I am not familiar and whose website indicates that they are the “first-ever CPA firm to officially open its Metaverse headquarters in the metaverse platform Decentraland.”

Ouch. As if Zuckerberg didn't have enough problems with the Metaverse already. Is this really the kind of PR he wants associated with it? 😁

What really interested me in all this, though, was the interview/transcript of a Twitter conversation with Bankman-Fried that Kelsey Piper published in Vox the other day. I have no idea what Bankman-Fried is trying to achieve here, but it's pretty plain that he is in a state of denial and is not accepting any responsibility for the eventual outcome. He admits he fucked up, but then shifts into blaming others, including his co-founders, and everyone who advised him to file for bankruptcy. Reading Ray's declaration, it sounds less like "I was advised" and more like "I was told do this or else", but whatever; now he is spinning a story (and I don't know if he believes this himself or was just trying it out on Piper) that if he had toughed it out and refused to file for bankruptcy he would have been able to cover most of the debts and settle up within a month or two:

I fucked up. Big. Multiple times. You know what was maybe my biggest single fuckup? The one thing everyone told me to do. Everything would be ~70% fixed right now if I hadn’t. Chapter 11. If I hadn’t done that, withdrawals would be opening up in a month with customers fully whole. But instead I filed, and the people in charge of it are trying to burn it all to the ground out of shame. I might still get there. But after way more collateral damage. And only 50/50.

Considering, according to the filing, that amongst the lawyers he consulted about that, one of them was his dad - ouch again. Sorry Dad, Sonny-boy is lumping you in with the bad advisors who led him astray. But he is in a state of delusion that he could have fixed this, or can fix it. He still can't admit he messed up because he was too greedy and not as smart as he thought he was, and all that rationalist woo about risk and utility maximisation was only a cover for bad decisions and fraud.

At the same time, negotiations were being held between certain senior individuals of the FTX Group and Mr. Bankman-Fried concerning the resignation of Mr. Bankman-Fried and the commencement of these Chapter 11 Cases. Mr. Bankman-Fried consulted with numerous lawyers, including lawyers at Paul, Weiss, Rifkind, Wharton & Garrison LLP, other legal counsel and his father, Professor Joseph Bankman of Stanford Law School. A document effecting a relinquishment of control was prepared and comments from Mr. Bankman-Fried’s team incorporated. At approximately 4:30 a.m. EST on Friday, November 11, 2022, after further consultation with his legal counsel, Mr. Bankman-Fried ultimately agreed to resign, resulting in my appointment as the Debtors’ CEO. I was delegated all corporate powers and authority under applicable law, including the power to appoint independent directors and commence these Chapter 11 Cases on an emergency basis.

I would definitely recommend reading this document to get a picture of what was going on. There is no way, unless he's trying to set up for an insanity plea or operating under impairment due to drugs/mental health problems, that Bankman-Fried can deny it was all down to him. He pretty much owned or controlled every entity that was going on, it was him and literally about three others who made all the decisions, and they seem to have treated the interlocking parts as their own private piggy-bank (e.g. "three loans by Alameda Research Ltd.: one to Mr. Bankman-Fried, of $1 billion; one to Mr. Singh, of $543 million; and one to Ryan Salame, of $55 million"). Then read the Vox article to see how he is admitting all his EA/altruism talk was basically telling them what they wanted to hear so he'd be popular and well-liked and they'd trust him, because getting people to like you is winning and winning is all that counts.

And this set-up was having billions of dollars in investment funding thrown at it, and it was less well-organised than a school bake sale when it came to handling and keeping track of what money was coming in and where it was going.

I confess that I might be misremembering but wasn't Bankman-Fried associated with the whole "external loci of control" and "free will is a myth" branch of rationalism/decision theory? I seem to remember something about that from one of the old SSC link round-ups. If so I'd be surprised if he did accept any responsibility.

Edit: NM found it, Looks like I was confusing Bankman-Fried with Barbara Fried but if I'm reading Wikipedia correctly I think this might actually be his mother.

https://www.bostonreview.net/forum/barbara-fried-beyond-blame-moral-responsibility-philosophy-law/

You're claiming rationalism thinks that philosophical debates about "free will" are meaningful and have relevance to assigning personal responsibility? By "rationalism" meaning LessWrong people? I don't believe you. And sure enough, I searched on LessWrong and found that not only does Eliezer Yudkowsky not agree with those like Barbara Fried, in 2008 he called it so trivial that it served as a "practice question" for aspiring rationalists, then later elaborated on his solution at further length.

https://www.lesswrong.com/tag/free-will

It's not like this is even restricted to one of the more obscure "sequences", I've seen "Dissolving the Question" cited elsewhere. Look, I'm sure there's people on /r/badphilosophy who would mock the arrogance of thinking you have easily dissolved a famous philosophical dilemma, and that would be annoying in its own way. But at least it would display at least some surface-level engagement with what was said. Grouping LessWrong in with a philosopher arguing that some inane sophistry about "free will" means we should adopt her preferred criminal-justice policy positions reflects an incredible lack of understanding of what they believe and how they think. Barbara Fried is engaging in the exact sort of thing that makes LessWrong people have such a poor opinion on the health of philosophy as a field.

You're claiming rationalism thinks that philosophical debates about "free will" are meaningful and have relevance to assigning personal responsibility? By "rationalism" meaning LessWrong people? I don't believe you.

To be fair, there was some [discussion about separating where internal and external locus of controls are accurate, which misses the point of the entire term. But it also was a tiny subdiscussion which none of the big movers and shakers spoke on, and which was not highly upvoted or supported.

You're claiming rationalism thinks that philosophical debates about "free will" are meaningful and have relevance to assigning personal responsibility?

No, I'm claiming that even if rationalists dismiss debates about free will as irrelevant, such debates are in fact relevant, and that there is a non-trivial portion of rationalists/EA activists who believe in external loci of control and act on that belief. I am implying that regardless of what Rationalists might classify as relevant or irrelevant that the beliefs of Bankman-Fried's mother might have had something to do with his observed behavior. and I am suggesting that the "strawman characterization" of utilitarianism as promoting sociopathic behavior is not made out of straw at all.

We shall know them by their fruits.

I don't think this is a good understanding of what LessWrong thought means when it considers the 'question' of free will 'solved.' And at the risk of saying Read The Sequences, there a Sequence Post on exactly that.

I have read it and to be blunt it rings a bit hollow when taken in the context of the wider corpus, and the general popularity of guys like Singer and Watts. As I've maintained for years now, I suspect that the so called "AI Alignment Problem" has much more to do with fundamental issues with rationalist/utilitarian mindset than it does with anything intrinsic to intelligence artificial or otherwise.

Yes, we've had this discussion recently, and I don't think you made a particularly compelling argument. And I think that just hand-waving that a core part of the rationalist text specifically says the failure mode you warn about is obviously something clearly and obviously wrong with references to Singer and Watts (wut?) manages to be even less compelling.

Yes, we've had this discussion recently, and I don't think you made a particularly compelling argument.

Yes we have, and I don't think you made a particularly compelling argument either.

As before, I will say that my take is similar to that of @IprayIam, ilforte @DaseindustriesLtd and others. The problem with utilitarianism is that a utilitarian cannot credibly commit to cooperate in any multi-agent game because their prime directive is to throw you under the bus/trolley the moment the they think that doing so might increase global utility.

I will freely admit that I am the crayon-eating retard of the bunch, and so I don't expect you to find my arguments particularly compelling, but I have yet to see you or anyone else offer a proper counter-argument to the above. It just gets dismissed as a strawman or a "that would never happen in practice", which I don't buy.

The problem with utilitarianism is that a utilitarian cannot credibly commit to cooperate in any multi-agent game because their prime directive is to throw you under the bus/trolley the moment the they think that doing so might increase global utility.

That's a fairer critique of utilitarianism in general, and while a lot of both Sequence-era and modern rationalist thought has been focused on solving problems related to it (most famously Parfit's Hitchhiker, but it underlies the strict version of Newcomb's Problem and some related matters that aren't as obviously tied to honesty), there's a reasonable complaint that even if you're running off a 'better' decision theory, outside of thought experiments it's really hard to prove it.

And then there's the reasonable rejoinder that the same issues exist for other foundations of morality : there's no way to prove that a deontologist's virtue of honesty doesn't have an asterisk for 'unless under duress' or 'unless I really want otherwise' or some other exception.

If you're interested in that discussion, we can have it. I've actually got mixed feelings on a lot of it!

But this isn't particularly related to FTX, or to your misunderstanding of what locus of control means, et cetera, or even that in terms of being dismissed because it would never happen in practice, that We've Seen The Skulls here to the point where Yudkowsky spent (too much, imo) time and focus on it!

FTX isn't someone throwing people under the bus the second they think it might increase global (or even personal!) utility; they're garden-variety scammers who caught the car they were chasing, and then fell off at sixty miles an hour. They donated more to their personal funds than they did to outreach, and hell, they spent more on a concussionball stadium endorsement than any individual grant. And that's the numbers if they'd managed to hold onto the bumper another few months: as is, they're extremely likely to end up in jail, with their (claimed) cause discredited, and many of the individual charities they said they were going to donate to broken.

For what it's worth, I do not endorse the "external locus of control" attack on Lesswrong. I am not familiar with the scholarship of Barbara Fried, but (going by the abstracts) @gattsuru and @sodiummuffin aren't shitting you when they say this isn't what Eliezer and his followers preach.

There is a strain of no-free-will demagoguery associated in academia with certain progressive political propositions; it's very loosely related to Consequentialist ethical theories (only in the sense of the corollary «well, we'll have to increase the odds of behaviors we like without much hope to shame people into them») and Utilitarian moral philosophy, and perfectly independent from the newfangled Singerian Rationalist/Effective Altruist cluster. If Barbara Fried also agrees with Singer, she arrives at that through some path not advised by Lesswrong sequences.

There are many different sets of people and many traditions in the group you distrust and lump together, and they have differences in their beliefs on many dimensions which are invisible in the sketch a disinterested layman can observe at a glance.