- The UK’s Charity Commission said on December 19 it had launched an investigation into the Effective Ventures Foundation.
- FTX filed for bankruptcy in November and is currently in bankruptcy proceedings in the United States.
- FTX is reportedly a “significant funder” of Effective Ventures.
The Charity Commission, the regulator that oversees charities in the UK, has announced that it is investigating the charity Effective Ventures Foundation.
For inquiries, please contact Press release On Monday, it concerns a fundraising deal between the charity and the collapsed cryptocurrency exchange FTX.
FTX is currently in bankruptcy proceedings in the United States following its bankruptcy in November 2022. The exchange’s founder and former CEO, Sam Bankman-Fried, was arrested in December and released on bail. The disgraced former crypto executive faces multiple charges, including wire fraud and money laundering conspiracy.
The commission said it launched an investigation into the charity on December 19, 2022.
FTX was a ‘significant funder’ of Effective Ventures
In an announcement Monday, the Charity Commission said its investigation found FTX’s bankruptcy “serious incidentAccording to the nonprofit, FTX’s philanthropic arm was a “significant funder” of philanthropic efforts.
The Trustees of Effective Ventures appear not to have committed any wrongdoing at the time of the press release, according to regulators. However, the charity’s assets are potentially at risk due to events related to bankruptcy, so the investigation “prove the facts”
In essence, the goal is for trustees to protect the charitable assets and to ensure that their actions are in line with their duties and responsibilities.
The Commission therefore seeks to ascertain a range of potential risks to nonprofit assets. It also examines trustees’ compliance with the law, including the governance and management of charities.
The Commission will issue a report at the end of the investigation.