History confirms that a high-level of achievement can often come with a fairly hefty price tag. It is often at the very height of their careers that leaders become the most vulnerable to ethical, moral, or legal lapses in judgment or decision-making. Just when it appears that they “have it all,” they often engage in risky (or stupid) behaviors that blow it all up. We often refer to this situation as the paradox of success.
Sam Bankman-Fried is an example of this paradox, becoming the latest cautionary tale of the dangers of greed and hubris. Many saw the founder of the FTX cryptocurrency exchange as the “poster boy” for crypto for several years. At the peak of his financial success, he was ranked as the 41st richest American on the Forbes 400 with a personal net worth of roughly $26 billion.
On March 28, 2024, he was sentenced to 25 years in prison and ordered to forfeit about $11 billion in assets. He was convicted of seven criminal charges, including wire fraud, commodities fraud, securities fraud, money laundering, and campaign finance law violations.
Bankman-Fried is just one example. There are numerous high profile-cases of leaders who fell from grace due to indiscretions like accounting fraud, embezzlement, sexual impropriety, and perjury (among others). It has become increasingly difficult to find leaders who can sustain our respect over the course of a long and distinguished career.
