The UK government’s Charity Commission probe into Effective Ventures Foundation, a charity funded by FTX, found that the trustees acted diligently and quickly to protect charity funds following FTX’s collapse. The trustees received £3.3 million in donations, which they ringfenced and obtained a Defence against Money Laundering from the National Crime Agency. They also reached a settlement agreement for the repayment of funds received from FTX in 2022. Two trustees with connections to FTX resigned from their positions during the investigation, while trustees not connected to FTX promptly assessed the risk to the charity and implemented measures to protect assets and operations.
The Charity Commission in England and Wales initiated investigations into Effective Ventures due to its links with FTX, a major sponsor. Effective Ventures disclosed its connections to FTX as a potential risk event, prompting the regulator to probe the charity’s trustees. It was reported that the charity paid $4.3 million to the FTX estate, equal to the entire amount received from FTX and the FTX Foundation in 2022. However, the interim CEO of EV US revealed that both EV UK and EV US collectively paid $26.8 million to the FTX estate, amounting to 100% of the funds received from FTX. This settlement allows EV’s projects to continue fundraising without using donations to cover the cost, condemning fraud and the actions leading to Sam Bankman-Fried’s conviction.
Effective Ventures Foundation took appropriate steps to protect charity funds following FTX’s collapse, as confirmed by the Charity Commission inquiry. The trustees complied with their legal duties, ringfenced donations, and obtained necessary approvals from authorities. The decision to reach a settlement agreement for the repayment of funds received from FTX was made based on independent legal advice. Trustees with connections to FTX resigned, while those not connected to FTX implemented measures to safeguard charitable assets and maintain operations. The charity’s swift and diligent actions in response to FTX’s collapse were commended by the Charity Commission.
The Charity Commission investigation into Effective Ventures Foundation found that the charity acted diligently and swiftly to protect funds in the aftermath of FTX’s collapse. Trustees received donations totaling £3.3 million, ringfenced the funds, and obtained the necessary approvals to secure assets. A settlement agreement was reached for the repayment of funds received from FTX, following independent legal advice. Two trustees with connections to FTX resigned, while others unaffiliated with FTX took immediate steps to assess risks and protect charitable assets. Effective Ventures Foundation’s proactive response to FTX’s collapse was found to be in compliance with legal duties and commendable by the Charity Commission.
Effective Ventures Foundation, a charity funded by FTX, underwent a Charity Commission probe that concluded the trustees acted diligently and promptly to protect charity funds after FTX’s collapse. The charity received £3.3 million in donations, which were ringfenced and safeguarded with the necessary approvals. A settlement agreement was reached for the repayment of funds received from FTX, guided by independent legal advice. Trustees with FTX connections resigned, and those unrelated to FTX promptly implemented protective measures for charitable assets. The Charity Commission praised Effective Ventures Foundation for its swift and diligent response to the challenges posed by FTX’s collapse, ensuring the protection of charitable funds and operations.
