logo

UK regulator targets FTX-linked charity

FTX

TL;DR Breakdown

  • Effective Ventures Foundation, a group connected to the collapsed cryptocurrency exchange FTX, is the subject of an investigation in the UK.
  • The Charity opened the investigation because the collapsed crypto exchange was a “major funder” of Effective Ventures.

According to the body in charge of overseeing registered charities in England and Wales, the Effective Ventures Foundation, a group connected to the collapsed cryptocurrency exchange FTX, is the subject of an investigation.

The Charity Commission announced on January 30 that it had opened the investigation because FTX was a “major funder” of Effective Ventures. The commission claims that Effective Ventures flagged its connections to FTX as a “serious occurrence” that would impact other assets, allowing the regulator to look into its trustees.

The commission added,

“There is no indication at this time of misconduct by the trustees.  However, there are signs that the charity’s assets could be at risk, so an investigation has been launched to gather information and ensure the trustees manage the charity according to their obligations.”

Organizations connected to FTX targetted

According to the Charity Commission, which will publish a report on its findings, the trustees were “cooperating completely” with the probe. The regulator launched the investigation after FTX filed for Chapter 11 bankruptcy in the US, and former CEO Sam Bankman-Fried was arrested in the Bahamas on December 19.

According to reports, charitable organizations in the United States that had previously benefited from FTX funding had been targeted during the exchange’s bankruptcy procedures. The company had donated millions of dollars to numerous causes and organizations. 

Many political campaigns have promised to return funds related to the collapsed crypto exchange or Bankman-Fried. Still, it’s unclear if companies and investors will be required to refund the exchange’s debtors in accordance with the law.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Lacton Muriuki

Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

Related News

Hot Stories

Animoca Brands cut target for metaverse fund by 20%
ARK Invest capitalizes on Coinbase dip with strategic purchases
Tether aims for $700M profit in Q1 2023, CTO claims
JP Morgan: Crypto market participants becoming more reliant on stablecoins following Silvergate Bank closure
Crypto liquidity hits new lows as the bull market begins

Follow Us

Industry News

Animoca Brands cut target for metaverse fund by 20%
ARK Invest capitalizes on Coinbase dip with strategic purchases
Tether aims for $700M profit in Q1 2023, CTO claims
JP Morgan: Crypto market participants becoming more reliant on stablecoins following Silvergate Bank closure
Crypto liquidity hits new lows as the bull market begins

Add Your Heading Text Here