FTX-Funded Charity Effective Ventures Praised for Protecting Funds, UK Government Investigation Finds
The Charity Commission of the UK government has concluded its investigation into Effective Ventures Foundation, a charity funded by FTX, and has determined that the charity acted diligently and promptly to safeguard its funds following the collapse of FTX.
According to a press statement, the inquiry found that the trustees of the charity took appropriate measures to protect the funds and fulfilled their legal obligations by acting diligently and swiftly in response to the FTX collapse.
During the investigation, it was discovered that the charity received £3.3 million ($300,000) in donations, which were ringfenced to ensure their protection. The trustees also obtained a Defense against Money Laundering from the National Crime Agency as an additional precaution.
Furthermore, the charity voluntarily decided to reach a settlement agreement to repay the funds it received from FTX in 2022. This decision was made after seeking independent legal advice, according to the report.
As a result of the investigation, two trustees who had connections to FTX resigned from their positions at the charity. However, the remaining trustees, who were not affiliated with FTX, took immediate action to assess the risk to the charity and implemented measures to safeguard its assets and continue its operations.
In January 2023, the Charity Commission initiated the investigation into Effective Ventures due to FTX’s status as a major sponsor. Effective Ventures had disclosed its ties to FTX as a potential risk to their other assets, prompting the regulatory body to examine the actions of the charity’s trustees.
Reports indicate that Effective Ventures had paid $4.3 million (£3.4 million) to the FTX estate. This amount represented the entirety of the funds received from FTX and the FTX Foundation in 2022, according to a spokesperson for the charity.
However, in a recent statement, Zachary Robinson, the interim CEO of EV US, revealed that both EV UK and EV US had collectively paid $26.8 million to the FTX estate. This amount corresponds to 100% of the funds that Effective Ventures received from FTX. Robinson emphasized that this settlement ensures that donations to EV’s projects will not be used to cover the cost and expressed strong condemnation for fraud and the actions that led to Sam Bankman-Fried’s conviction.
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