UK regulator to investigate Effective Ventures Foundation after FTX collapse

The Charity Commission for England and Wales has initiated an investigation into the Effective Ventures Foundation. The organisation was supported by the FTX Foundation, говорится in a press release.

According to the release, there are currently “no signs of wrongdoing […], but there are signs of potential risks to the charity’s assets”. During the investigation the Commission will examine:

• the extent of any risk to the Foundation’s funds;
• whether trustees have complied with duties to safeguard the Foundation’s assets;
• governance and administration of the charity, including the relationship between trustees and donors, and potential conflicts of interest.

The collapse of Sam Bankman-Fried’s exchange was described by the Commission as a ‘serious incident’ due to the substantial sums of funds received by Effective Ventures from the platform’s charitable arm.

On November 11, 2022, the FTX Group filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. Bankman-Fried stepped down as CEO, later they charged him with eight criminal counts. The founder of the exchange pleaded not guilty.

On December 23, he was released on a bail of $250 million. In January 2023, the U.S. Department of Justice froze 55,273,469 Robinhood shares as part of the case against Bankman-Fried.

As reported, the Australian Securities and Investments Commission had concerns about the operations of the local FTX unit and had been watching the company closely long before its collapse.