The commission tasked with regulating registered charities in England and Wales has announced that it has launched an investigation into Effective Ventures Foundation, an organization linked to failed cryptocurrency exchange FTX.
In the announcement of 30 January, The Charity Commission said it had launched an investigation because FTX was a “significant funder” of Effective Ventures., According to the commission, Effective Ventures reported its relationship with FTX as a “serious incident” that could impact other assets, opening the door for the regulator to investigate its custodians.
“At present there is no indication that the conservators have done anything wrong,” the commission said. “However, there are indications of potential risks to the charity’s assets, and an investigation has been launched to help establish the facts and ensure that the trustees safeguard the charity’s assets and in accordance with their duties and responsibilities.” manage it”.
We have launched an investigation into Effective Ventures Foundation following the bankruptcy of a key funder.
Read more: https://t.co/zjH1TdysYf pic.twitter.com/Qda9I0YwVP
— Charity Commission (@ChtyCommission) January 30, 2023
We have initiated an investigation into Effective Business Foundation following the bankruptcy of a major funder.
The Charity Commission reported that the trustees were “co-operating fully” with the investigation, and would publish a report on its findings. The regulator launched the investigation on December 19 after FTX filed for Chapter 11 bankruptcy in the United States and former CEO Sam Bankman-Fried was arrested in the Bahamas.
in the United States, Charities that previously benefited from the FTX Fund, which donated millions of dollars to various groups and causes, have been affected by the bankruptcy proceedings of the exchange. Several political campaigns have promised to return funds linked to FTX or Bankman-Fried, but it is unclear whether companies and investors will be legally forced to “repay” the exchange’s debtors.
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