FTX-funded charity faces UK government probe News ▸ UK ▸ FTX ▸ Bankruptcy
FTX-funded charity faces UK government probe
The Charity Commission described FTX's bankruptcy as a "serious incident" because it was significant funder of the Effective Ventures Foundation.
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Updated: Jan. 30, 2023 at 5:47 pm UTC
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The U.K.’s Charity Commission has launched a probe into an FTX Foundation-funded charity, Effective Ventures Foundation, according to a Jan. 30 statement.
FTX’s bankruptcy is a “serious incident” because its “philanthropic foundation was a significant funder of the charity,” the Charity Commission said. It added that there were no indications of any wrongdoing by the trustees.
“The inquiry has been opened to establish facts and help ensure the trustees protect the charity’s assets and are running the charity in line with their duties and responsibilities.”
However, the probe will examine the risks to the charity’s assets and determine if the trustees performed their legal duty of protecting the charity’s property.
The authorities added that it would also probe the relationships between the charity’s trustees and its funders and also try to identify if there was any conflict of interest.
The Commission said the Effective Ventures Foundation trustees have been fully cooperating, adding that it could extend the scope of the inquiry if additional issues emerge.
Meanwhile, FTX’s new management is trying to recover the donations made by the bankrupt firm to several charities and politicians. The bankrupt firm gave $160 million in grants to over 100 non-profits as of September 2022.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.