FTX-Funded Charity Effective Ventures Acted Diligently to Protect Funds, UK Government Probe Concludes
Effective Ventures Foundation, a charity funded by FTX, has been praised by the UK government’s Charity Commission probe for its diligent and quick actions to protect charity funds following the collapse of FTX. The trustees of the charity took appropriate steps to safeguard the funds and fulfilled their legal obligations, according to a press statement.
During the investigation, it was discovered that the charity received £3.3 million ($300,000) in donations, which were ringfenced to ensure their safety. The trustees also obtained a Defence against Money Laundering from the National Crime Agency as an additional precautionary measure.
Furthermore, the charity made the decision to reach a settlement agreement for the repayment of funds received from FTX in 2022. This decision was based on independent legal advice received by the charity. As a result, two trustees with connections to FTX resigned from their positions at the charity.
However, the trustees not affiliated with FTX acted swiftly to assess the risk to the charity and implemented measures to protect charitable assets and maintain operations following the collapse of the FTX exchange.
Effective Ventures has agreed to repay the entire amount it received from FTX, which amounted to $4.3 million (approximately £3.4 million). This repayment was made to the FTX estate and ensures that donations received by the charity will not be used to cover the settlement cost.
The FTX Foundation, one of the largest founders of EV UK, ceased operations in November 2022 after the collapse of FTX exchange. In a recent statement, Zachary Robinson, interim CEO of EV US, revealed that both EV UK and EV US collectively paid $26.8 million to the FTX estate, which represents 100% of the funds received from FTX.
With this settlement in place, EV can continue its fundraising efforts with confidence that donations will not be utilized to cover the settlement cost. The charity strongly condemns fraud and the actions that led to Sam Bankman-Fried’s conviction.
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