FTX charity was reason for investigation in UK
2023.01.30 13:18
FTX charity was reason for investigation in UK
By Tiffany Smith
Budrigannews.com – The Effective Ventures Foundation, a group connected to the failed cryptocurrency exchange FTX, has been the subject of an investigation by the commission in charge of regulating registered charities in England and Wales.
The Charity Commission said in an announcement on January 30 that it had started the investigation because FTX was a “significant funder” of Effective Ventures. The commission claims that Effective Ventures reported its ties to FTX as a “serious incident” that could affect other assets, allowing the regulator to conduct an investigation into its trustees.
The commission stated, “There is no indication of wrongdoing by the trustees at this time.” However, there are indications of potential threats to the charity’s assets, and an investigation has been launched to gather information and ensure that the trustees are safeguarding the charity’s assets and operating it in accordance with their responsibilities.
Following the bankruptcy of a significant funder, we have initiated an investigation into Effective Ventures Foundation.
The trustees were “cooperating fully” as part of the investigation, according to a report from the Charity Commission, which will publish its findings. After FTX filed for Chapter 11 bankruptcy in the United States and former CEO Sam Bankman-Fried was arrested in the Bahamas, the regulator opened the investigation on December 19.
During the bankruptcy proceedings of the exchange, charitable organizations in the United States that had previously benefited from FTX funds are said to have been targeted. The company donated millions of dollars to various groups and causes.
It is unclear whether businesses and investors will be compelled to legally “refund” the debtors of the exchange, despite the fact that numerous political campaigns have pledged to return funds associated with FTX or Bankman-Fried.
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