Reading reports of how Sam Bankman Freid, the former CEO of FTX, raised money reinforced for me that the more money you have, the less you have to follow the rules. Apparently, when he pitched VCs and was asked for financials his reply was, “We don’t have financials, but I can send you a text with some numbers.” Then the VCs fell all over each other to give him tens of millions in funding, declaring him some kind of altruistic business genius.
When he played video games during interviews and business meetings, he was portrayed as some kind of savant, instead of an asshole.
When he showed up to important events with wild, unkempt hair and shabby clothes, people attributed it to his lack of concern for appearance because he was so driven.
And then, when it all collapsed, they were all surprised that it turned out he was a drug-using asshole, shyster and con man.
So first, I am not surprised. I remember hearing him on the Sam Harris podcast in December 2021 talking about “effective altruism”. I couldn’t even make it through an hour of the podcast because he sounded so full of shit. He was unbearable. I remember thinking, “effective altruism sounds good, but how can Sam Harris stomach this guy?”
I never invested in any cryptocurrency because the entire thing seems sketchy. It is too similar to too many other investment scheme bubbles I’ve seen come and go.
But this post isn’t about what a genius I am or how to invest. It’s about how rules are made for everyone except for the rich and powerful.
When I needed a new cell phone or have my utilities turned on, I had to pass a credit check or else pay a significant advance deposit. I couldn’t even apply for a driver’s license without having multiple documents verifying my identity, residence and insurance.
Rich people don’t deal with any of those rules. They simply ignore them and still get what they want.
I once worked for a large Fortune 1000 company. As I worked my way up the ladder, I was amazed at the “perks” I received at each higher level. As a lower level sales rep, I worked long set hours. I had limited PTO days which had to be approved in advance. There were strict protocols enforced for mandatory training, certifications, paperwork and behavior. Attending conferences and trade shows sucked because we had to spend every minute in sessions, eat only the “company lunchroom” meals, share hotel rooms with coworkers and attend specific “team building” evening events.
A few years later, when I was in management, I learned I could skip sessions, expense meals at restaurants, get my own hotel room and use my judgement over which events to attend. As a manager, I set my own schedule and prioritized whatever I felt was needed. As long as my team hit our numbers, I could choose which “rules” to ignore – within reason. After all, I was just in middle management. I was no Sam Bankman-Freid.
So this year, there are a bunch of Trump trials happening. He’s been charged with rape, not paying his workers or attorneys, fraud, incitement to riot and more.
He’s been found guilty in several cases already and fined millions. I suspect he’ll be found guilty of more crimes.
There is no doubt in my mind that he’ll never pay the fines. He’ll just ignore them.
He will ignore the rules, because he can. Just like he did his entire life, including as President.
Trump is an asshole and a con man. But that’s not why he gets away with this. He’s just another rich guy who doesn’t have to follow the rules.
The surprising thing is that SBF and Trump were charged and indicted at all. Clearly they both were shocked by this turn of events. In SBF’s case, I think he screwed over so many people wealthier than him (fellow rule breakers) that they were able to force the issue. In Trump’s case, it is clearly politics.
It is kind of quaint to see both of their reactions at even a hint of being held to account. They are mortified and incensed.
Because the rules aren’t made for people like them. They are made for people like you and me.