Going Infinite: The Rise and Fall of a New Tycoon

In finance, a commodity is a raw material or primary agricultural product that can be bought and sold, such as gold, oil, or wheat. Regulatory agencies debate whether cryptocurrencies should be classified as commodities. Lewis notes that, “a bit oddly, the older the [crypto] coin, the more people thought of it as a commodity” (146).

Alameda Research was a crypto quant trading firm, specializing in algorithmic trading strategies in the cryptocurrency market. Quant trading, short for quantitative trading, refers to the use of mathematical and statistical models to make trading decisions. In founding Alameda Research, Sam Bankman-Fried used techniques he had learned from his previous work at Jane Street, a quantitative trading firm in the traditional finance industry.

Cryptocurrency is a digital currency that operates on a decentralized network. It is based on cryptographic principles and uses cryptography to secure transactions and control the creation of new units. While the term contains the word "currency," cryptocurrencies function in a different way from traditional fiat, or government-issued, currencies like the US dollar or euro.

A cryptocurrency exchange is a platform where users can buy, sell, and trade cryptocurrencies. Sam founded the crypto exchange FTX.

"Earn to give" is a philosophical approach to earning money with the intention of donating a significant portion of it to charitable causes. This concept is espoused by those in the effective altruist movement. It justifies pursuing high-paying careers, even in industries traditionally seen as morally lacking, to have a greater capacity to donate and make a positive impact in the world.

Effective altruism is a philosophy and social movement that seeks to use evidence and reason to most effectively improve the world and alleviate suffering. EA promotes the idea of making a maximal positive impact with one’s time, money, and resources. Inspired by the work of philosopher Peter Singer, EA encourages individuals to prioritize actions that have the greatest benefit for others, regardless of personal interests or emotions. In 2009, young philosophers at Oxford University who shared Singer’s beliefs popularized the effective altruist movement.

ETFs are similar to individual stocks in that they are investment funds traded on stock exchanges. At Jane Street Capital, Sam worked on the ETF desk.

EV is a concept used in decision theory that quantifies the potential value or benefit of an action by taking into account the probabilities of different outcomes and their associated values. Effective altruists use the concept of expected value to assess the potential impact of different charitable actions or interventions. In Going Infinite, the employees of Alameda and FTX frequently refer to the concept of EV.

Fiat currency is a type of currency that is backed by a government's guarantee, usually in the form of legal tender laws.

In the context of finance, futures refer to standardized contracts that obligate parties to buy or sell a particular asset at a specified price on a future date. These contracts can be traded like commodities or securities. FTX was a futures exchange.

A high frequency trading firm is a company that uses advanced technology and algorithms to execute high volumes of trades in financial markets at extremely fast speeds. Prior to entering the cryptocurrency industry, Sam worked at Jane Street Capital, a high frequency trading firm.

“The Schism” was the nickname given to the split at Alameda Research, in which disgruntled employees left the company after $5 million of investor funds went missing. About half the employees and most of the leadership quit under the assumption that Sam had embezzled the money; however, the funds later were found to have simply been misplaced due to the chaotic nature of Alameda.

In the context of finance, a security is a tradable financial asset, such as stocks, bonds, or options, that holds some form of monetary value. Regulatory agencies debate whether cryptocurrencies should be classified as securities.