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‘Effective Altruism’ Led Bankman-Fried to a Little-Known Wall St. Firm


To close observers of Wall Street, the fall of Sam Bankman-Fried carried a curious twist: The man whose unbridled recklessness may have led to one of the largest financial frauds in history started his trading career — and met many of his future lieutenants — at an under-the-radar firm known for keeping a tight grip on its financial risk.The collapse of FTX, the cryptocurrency exchange that Mr. Bankman-Fried founded, has drawn attention to Jane Street Capital, a behemoth Wall Street firm that has few outside clients and mostly invests its own money. But when Mr. Bankman-Fried joined Jane Street fresh out of college in 2014, its reputation for risk management wasn’t what attracted him.Instead, he went there because of his interest in a philanthropic movement called effective altruism, which holds that taking a high-paying job is worthwhile if the en …

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