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Culture War Roundup for the week of March 20, 2023

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Is there a wage gap in fraud?

New court documents have revealed how much money each FTX executive received.

  • Sam Bankman Fried: $2.2 billion

  • Nishad Singh: $587 million

  • Gary Wang: $246 million

  • Caroline Ellison (guess): $6(six) million

I honestly feel bad for her. Forget jail time, that’s barely worth the disgrace brought to her family (who are well-regarded academics). Ryan Salame, who wasn’t even in on the fraud got more than that. The only explanation I can think of is that she was a true believer in the effective altruism thing. If everyone is earning to give, it doesn’t matter how the loot gets split up right? Except everyone else was buying yachts.

Idk, maybe this is just what happens when you never ask for a raise.

Those three were the founders, so it makes sense they put all the spoils assets in their names (and if you look at the breakdown of the three 'silos' Bankman-Fried made sure he was the main guy) while she was only hired on. Then she became co-CEO and then her co-CEO (Mr. Salame there) obviously figured out something skeevy was going on, cleared out, and she was left as CEO.

Really, she was left holding the bag while the others either got out or went higher. Makes sense she'd turn state's evidence against the lot of them, looks like they did use her as a cat's paw (or I should say Bankman-Fried did, he used their friendship/romantic relationship to have her be the name in charge of Alameda Research while she dutifully signed off on whatever Sam wanted).

I have to laugh about Ryan Salame; having seen his non-explanatory tweet as to why he was stepping down from FTX as co-CEO, turns out the urgent family time he needed was to... open restaurants:

Ryan Salame has become synonymous with Lenox hospitality since he purchased his first restaurant, Firefly, in July 2020. Since then, he’s founded the Lenox Eats Collective and added three more Lenox-based favorites to his stable of local businesses. Restaurants include Olde Heritage Tavern (“The Heritage”), Sweet Dreams (formerly The Scoop), and, making its debut in late 2022, Campfire (formerly Café Lucia).

I can't say that Salame was in on the fraud, but it's pretty clear that he sniffed something rotten in the state of Denmark and got out while the going was good. Maybe he just realised that the entire house of cards was not sustainable and he decided to leg it with his dough while there was still dough flowing.

EDIT: Whoops, I was wrong, Salame was not co-CEO of Alameda, that was John Trabucco. I can't keep track of all those with their hands in the till, sorry!

EDIT EDIT: And I shouldn't be attributing dodgy motives to him; if he treated FTX not as "earning to give, EA" but simply Just A Job, then he signed up to make a ton of money fast and got out when he did that in order to pursue his true passion, being a restaurateur.

Except everyone else was buying yachts.

Or expensive holiday homes for their parents, throwing money at their brother's charitable foundation, backing a no-hoper campaign in Oregon 😁

Before stepping down last August, Trabucco bought property worth $10 million in cash, as well as a 52-foot yacht. Court documents filed Wednesday show he transferred $2.5 million from Alameda to American Yacht Group in March 2022, with the cited reason "for the benefit of John Samuel Trabucco."

Gotta admire his neck, that was one guy whose definition of Effective Altruism was "me first" and "charity begins at home" 🤣

that’s barely worth the disgrace brought to her family (who are well-regarded academics).

Many academics who supported the Iraq War or backed related causes did well

I think Caroline Ellison was mostly involved with Alameda, not FTX. The others were paid more for their work with FTX.

She seems to have been the fall guy for Alameda. SBF insists (almost certainly lying) that the two were separated so she wouldn't have much to do with FTX to maintain appearances.

Besides losing all of the customer money.