- UK’s Charity Commission says it opened the investigation into Effective Ventures Foundation on 19 December.
- FTX collapsed in November and is currently undergoing bankruptcy proceedings in the US.
- FTX is reported to have been a “significant funder” of Effective Ventures.
The Charity Commission, the regulator that oversees charity organisations in the United Kingdom, has announced that it is investigating the charity organisation Effective Ventures Foundation.
Currently, FTX is undergoing bankruptcy proceedings in the United States following its implosion November 2022. The exchange’s founder and former CEO Sam Bankman-Fried was arrested in December and is out on bail. The disgraced former crypto executive is facing multiple charges, including wire fraud and conspiracy to commit money laundering.
The Commission says it opened its inquiry into the charity on 19 December 2022.
FTX was a “significant funder” of Effective Ventures
In its announcement on Monday, the Charity Commission indicated that its investigation stems from Effective Ventures’ report that FTX’s bankruptcy was a “serious incident.” Per the non-profit organisation, the philanthropic arm of FTX had been “a significant funder” of its charitable activities.
According to the regulator, Effective Ventures trustees appear to have committed no wrongdoing as of the press release. However, because the charity’s assets are potentially at risk due to events around the bankruptcy, the probe seeks to “establish facts.”
In essence, the goal is to ensure trustees are protecting the charity’s assets and that their actions align with whatever duties and responsibilities they have.
The Commission is therefore looking to ascertain the extent of any would-be risks to non-profit’s assets. It is also examining whether the trustees have, and are complying with the law, including in the charity’s governance and administration.
The Commission will publish a report at the end of its investigation.
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