According to the body in charge of overseeing registered charities in England and Wales, the Effective Ventures Foundation, a group connected to the collapsed cryptocurrency exchange FTX, is the subject of an investigation.
The Charity Commission announced on January 30 that it had opened the investigation because FTX was a “major funder” of Effective Ventures. The commission claims that Effective Ventures flagged its connections to FTX as a “serious occurrence” that would impact other assets, allowing the regulator to look into its trustees.
The commission added,
“There is no indication at this time of misconduct by the trustees. However, there are signs that the charity’s assets could be at risk, so an investigation has been launched to gather information and ensure the trustees manage the charity according to their obligations.”
Organizations connected to FTX targetted
According to the Charity Commission, which will publish a report on its findings, the trustees were “cooperating completely” with the probe. The regulator launched the investigation after FTX filed for Chapter 11 bankruptcy in the US, and former CEO Sam Bankman-Fried was arrested in the Bahamas on December 19.
According to reports, charitable organizations in the United States that had previously benefited from FTX funding had been targeted during the exchange’s bankruptcy procedures. The company had donated millions of dollars to numerous causes and organizations.
Many political campaigns have promised to return funds related to the collapsed crypto exchange or Bankman-Fried. Still, it’s unclear if companies and investors will be required to refund the exchange’s debtors in accordance with the law.
