When the FTX crypto exchange collapsed in 2022, it wiped out billions of dollars in investor funds and significantly changed how the public perceives digital currencies.
It soon became apparent that the company’s CEO, Sam Bankman-Fried, who considered himself an Effective Altruist, had illegally transferred billions from the exchange to support his hedge fund, which was, at least nominally, run by Caroline Ellison, his former girlfriend and co-worker.
This dramatic fall from grace has inspired a new Netflix series called “The Altruists,” described as “a toxic love story inspired by a real fraud,” much to the shock and dismay of those who witnessed the collapse firsthand.
Constance Wang, FTX’s former chief operating officer, has criticized the portrayal of these events through the lens of a romantic narrative.
“[Bankman-Fried’s] main ambition was to change the world, to have a positive impact,” she said. “Focusing on love or relationships seemed pretty secondary to him.”
Wang, who is portrayed in the show by Madison Hu, said she couldn’t even make it through the trailer presented to her by a friend over breakfast. “I literally felt like throwing up; it was just so uncomfortable,” she recounted after watching only 40 seconds.
She further dismissed the romantic angle as absurd. “For a long time, we didn’t even know they were dating. Sam seemed completely focused on work.”
The series follows Bankman-Fried, Ellison, and their associates as they attempt to overhaul the financial landscape in line with the principles of Effective Altruism, supposedly leveraging their wealth and intellect for the greater good.
Yet, Bankman-Fried’s actions, such as purchasing a $35 million home in the Bahamas and misusing $8 billion of investors’ cash for his hedge fund, led to the collapse of the entire enterprise. Given that federal law doesn’t excuse individuals for charitable intentions post-fraud, he is now serving a 25-year sentence for money laundering and fraud.
Wang mentioned attending a few Effective Altruist gatherings hosted by Bankman-Fried but found the atmosphere intellectually driven to the point of unrelatability. “They discuss complex subjects like math and biology, but I prefer lighter conversations during dinners.”
She described the core team at FTX, consisting of about a dozen individuals who lived with Bankman-Fried and Ellison in the Bahamas, as romantic couples. However, she admitted she had never witnessed any scandalous behavior at work. “Honestly, I didn’t even know the term ‘orgy’ until I read it in an article; I had to look it up,” she remarked.
Wang characterized FTX employees as mostly socially awkward individuals who enjoyed chess and board games, a stark contrast to the loud parties depicted in the Netflix show. She feels that the show has taken numerous liberties in dramatizing these events.
In her view, the version of Bankman-Fried that she’s familiar with was quite shy, often avoiding eye contact during conversations. “When I met him back in 2018, he couldn’t look anyone in the eye and often stared at the floor,” she explained.
In contrast, the character played by Anthony Boyle in the series appears confident and assertive. Meanwhile, Wang insisted that Ellison, as portrayed by Julia Garner, was actually mild-mannered. “In real life, she was gentle and soft-spoken, and never aggressive.”
Quinn Li, another former marketing manager at FTX, described the trailer as “very, very bad,” suggesting it infused romance and drama that wasn’t reflective of reality. “Everyone was quite rational,” Li observed.
Wang recounted the critical events in November 2022 when FTX’s downfall began after Binance’s CEO announced he would sell his FTX tokens, prompting customers to withdraw about $6 billion within just three days.
As the head of the VIP team, charged with managing major traders, Wang said the initial message from higher-ups encouraged calmness. “Sam assured us that we were fine and that we could let customers withdraw,” she recounted.
Despite some returning their funds, the situation rapidly deteriorated. “Eventually, it became clear that withdrawals had been halted,” she said. Around 3 a.m., Bankman-Fried finally revealed the distressing truth: the exchange lacked sufficient funds to meet withdrawal demands.
“I was in shock,” Wang recalled, noting that this was the first time she was confronted with the financial shortfall, which she estimated at $8 billion. The implications of this crash were devastating for everyone at FTX.
In her last conversation with Bankman-Fried, Wang expressed concern for the employees affected by the fallout. “He seemed rather unfazed,” she reflected, unsure if he truly grasped the grave impact of his decisions on the staff and investors.
“Sam overestimated his own intelligence,” Li added. “He genuinely was smart but underestimated how savvy others could be.”
Ellison, who has since pleaded guilty and testified against Bankman-Fried, was released after about 14 months in custody and is currently employed at a charity in San Francisco under an alias.
The fallout affected around nine million investors and customers, leading to billions in losses. Although FTX’s bankruptcy team has recovered around $16.5 billion for customer reimbursements, it’s worth noting that bankruptcy prices are reflective of November 2022 valuations when Bitcoin was around $16,000, which is significantly lower than its current price of over $80,000.
Wang has faced scrutiny regarding her role in the downfall, often questioned about how a COO could remain unaware of such significant issues. “If people want to conceal something, they’ll do their utmost to keep it under wraps,” she said.
Having overseen FTX’s international expansion, Wang invested heavily in the exchange and its related assets. Despite holding a stake worth ten figures at one point, she returned to Hong Kong with only $80,000.
Wang noted that she was investigated by the Justice Department for a year but ultimately faced no charges and did not testify at Bankman-Fried’s trial, suggesting she was not privy to information pertinent to the case.
Watching the trial’s media coverage was tough for her; she felt everything inside her crumbled, though her physical self remained intact. This led to a period of depression and even suicidal thoughts until supportive friends helped her recover.
Now, she’s returned to the business world, co-founding Pacifica, a trading platform that has reportedly completed $10 billion in transactions recently.
“I am grateful to be free and starting a new company,” she said, reflecting on her current endeavors.
Wang expressed surprise that Netflix never contacted her for her perspective or included her in the creation of her character in the series. “I searched my mailbox and didn’t receive any communication from them,” she noted, adding that she is quite anxious about how she will be depicted.
Despite the ordeal, she holds no resentment towards her former colleagues. “I don’t hate Sam or anyone else involved; I feel sadness and disappointment,” Wang concluded.
