Charity Commission investigating Effective Ventures Foundation over ties to FTX
Zach Anderson Jan 31, 2023 11:56
The Charity Commission for England and Wales began the probe because crypto exchange FTX is a "major sponsor" of Effective Ventures Foundation.
Effective Ventures Foundation is an organisation with connections to the defunct cryptocurrency exchange FTX, according to a recent announcement made by the commission in England and Wales that is responsible for the regulation of registered charities.
The investigation was initiated owing to the fact that FTX is a "major sponsor" of Effective Ventures, as stated by the Charity Commission in a statement made on the 30th of January. Effective Ventures reportedly disclosed its links to FTX as a "severe event" that may possibly harm other assets, which opened the way for the regulator to probe the trustees of Effective Ventures.
According to the statement made by the commission, "there is no evidence of misconduct by the trustees at this time." "However, there are indications of potential risks to the assets of the charity. The inquiry has been opened in order to establish the facts and assist in ensuring that the trustees are protecting the assets of the charity and are operating the charity in accordance with their duties and responsibilities."
During the course of the inquiry, the Charity Commission indicated that the trustees were "cooperating completely," and it would soon publish a report detailing what it discovered. After FTX filed for Chapter 11 bankruptcy in the United States and former CEO Sam Bankman-Fried was detained in the Bahamas, the regulator began their investigation on December 19. This was after both events had occurred.
During the processes surrounding the bankruptcy of the exchange, it has been revealed that charity organisations in the United States that had previously benefitted from FTX funding have been targeted. The company had donated millions of dollars to a variety of organisations and causes. A great number of political campaigns have made commitments to return monies that are associated with FTX or Bankman-Fried, but it is not clear if firms and investors will be legally compelled to "refund" the exchange's creditors.
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