Alfred Tora

Sam Bankman-Fried – SBF.

Imagine for a minute that you’ve finally decided to dip your toe into the world of cryptocurrency and you’re told that there’s a cheaper financial exchange platform that doubles as a hedge fund. The mind behind this venture has been vetted by the “best and brightest” of the financial world. The only problem is that this “genius” is Sam Bankman-Fried.

Chances are you’ve heard this name or seen it pop up on your LinkedIn feed over the past few weeks. To recap, SBF founded and ran FTX and Alameda Research – a cryptocurrency exchange/hedge fund and cryptocurrency trading company respectfully – and was heralded as one of the greatest young minds of this century. It turned out to be all a lie.

On November 8th, 2022, SBF’s house of cards came tumbling down as his elaborate scheme began to unravel due to FTX’s insolvency crisis reached a crescendo. He had been running one of the greatest financial frauds in the history of the United States – let alone the world.

But how was he able to conduct this shadowy business? Because he had on his brow the laurel wreath given to triumphatores and was shrouded by a halo usually reserved for venerated saints and business demigods. Now he has become our time’s cautionary tale of hubris and complacency – much like the greek Icarus.

This year has seen the implosion of business supernovas like Elon Musk and Mark Zuckerberg with their empires being shaken to the core because of it. SBF is just the latest in a long line of captains of industry who have fallen into disgrace, or at least public scorn – see crowds booing Musk off the stage. If I were asked to give my opinion on what the biggest business trend for the year was, I wouldn’t have to think too hard about it. This year has been a year where the shroud of “The Great Man” – who is born to lead – has been torn apart. This is no more apparent than in the tech world.

It is becoming increasingly evident that we are more than willing to raise and praise anyone who seems to have the vision and the drive to take us into the future – without really scrutinizing whether this is the right person for the job in the first place. Be it with social media, future tech, or business models, we are quick to elevate these obviously flawed humans into positions of power without actually vetting them thoroughly. With the right references, the world can be duped into believing in someone who would fail a BS test given on the streets. THIS NEEDS TO STOP!

I believe that we are a near a breakthrough into a whole new world. A world that relies on technologies and concepts that we don’t have right now – a reality based virtually. Forget the obvious entertainment value of having a virtual reality (VR) simulation where you can meet your favorite game characters and play golf from the comforts of your room. VR will change the way we work, from having training simulations that could mimic real-life work situations during the orientation process at a new job, to the way you tackle problems as a team via holographic work processes.

BUT this all depends on whether we can continue to trust the tech that we have now! SBF’s muck up will obviously cause negative public perceptions on cryptocurrency and blockchain – two technologies that are critical foundations on which VR needs to be built. Zuckerberg’s failing with the Metaverse is another cause for concern as well.

What I’m getting at is this: we need to ensure that we are placing our trust in people that have the vision, the drive, and the ethics to take us into that promised land. The more we lose trust at this stage, the longer it will take us to become comfortable with the new world. There will obviously be obstacles and failure along the way but when these failings are the result of one man’s ego, that’s where trust deserts us.

On a completely different, yet equally important, note I wanted to highlight a lesson we can learn from a leadership standpoint. Whether you lead an organization, a department, a team, or yourself, an integral part of leadership is Ethics. At the beginning of my undergraduate studies, a compulsory university unit we had to take was Ethics and Governance. I wondered, then, about the importance of this course. “Completely irrelevant” I thought. The naivete of youth!

SBF was yet another reminder of why ethics is important in the business world. Reports are showing that he had been conducting unethical transactions between his companies from as early as 2019. When the writing was on the wall, instead of ensuring the security of his clients, he opted to line his pockets as much as he could before the news hit the public. It was his greed that took him. But there are many forms on unethical behavior that we may or may not think about.

As pasifika we need to be aware of implicit influences that we are brought up with that could lead to making unethical choices ourselves. We are raised with communal values and maintaining social relationships is considered a high priority.

But as leaders, we must also be able to separate family from business. Especially when we make work-related decisions.

Time and again I have heard stories of people in power that make decisions that benefits a family member or friend without giving the same chance to other entities. They don’t think much about it. You’ve done what’s expected of you from a cultural standpoint – it’s a way to help a family member out right? Unfortunately, that’s called nepotism.

So let’s take this time to review the border between our business and social life. Reflect on ethics and why it’s important when we make decisions – be it at the office or at home. Take a refresher course on what constitutes unethical behavior. Stay vigilant. Finally, stay strong! I know of pressures we may feel from family or friends who ask for you to swing things their way. It’s going to be tough. Especially when we’re raised to always help your community out. But there are ethical ways to do that…and then there’s how SBF did it.

To reiterate the lesson for this edition we need to go back to the story of SBF. Along comes someone without a financial background, but with recommendations from “experts”, and creates a financial exchange platform and hedge fund. Because it’s in cryptocurrency (with complex tech) he was able to hide behind complex jargons and BS. Afraid of looking stupid, no one in authority actually asked an intelligent question.

So Lesson 1: Stay Cautious and Ask Questions.

Because of SBF’s antics there will be repercussions for cryptocurrency and. to an extension, critical steps into making virtual reality accessible. SBF is just another edition in a long line of “forward thinking leaders” that have caused more havoc than clarity when it comes to ushering in the future. They are damaging the trust needed for new technology before it even comes into maturation.

Lesson 2: Leaders can impact the future long after they are gone. Choose them wisely.

We also need to be aware of implicit influences as we operate our businesses and make decisions. We come from a culture rich in social relationships and that is a strength of ours. We instinctively want to help them out when we can. We need to ensure that whatever help we give is ethical, lest we follow SBF’s lead down “Unethical lane”.

Lesson 3: Be Ethical Leaders.

As we come to the end of the year, I thought it would be nice to end this edition with a thought on moving forward. So to end, here are words from the Reverend Dr. Martin Luther King Jnr.:

“If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do you have to keep moving forward.”