📰 Table Of Contents
Effective Ventures Foundation’s Response to FTX Collapse
The UK government’s Charity Commission probe has concluded that Effective Ventures Foundation, an FTX-funded charity, acted diligently and quickly to protect charity funds in the wake of FTX’s massive collapse.
Trustees’ Actions
- The trustees took appropriate steps to protect the charity’s funds and complied with their legal duties.
- They ringfenced the £3.3 million ($300,000) in donations received and obtained a Defence against Money Laundering from the National Crime Agency.
- A settlement agreement was reached for the repayment of funds received from FTX in 2022 based on independent legal advice.
Resignations and Measures
During the investigation, trustees with connections to FTX resigned from their positions at the charity. Trustees not connected to FTX acted quickly to assess risks and protect charitable assets post-FTX collapse.
Repayment and Settlement
Effective Ventures disclosed its links to FTX as a significant event, leading to investigations by the Charity Commission. The charity paid $4.3m to the FTX estate, equivalent to the funds received from FTX in 2022. EV US and EV UK collectively paid $26.8m to the FTX estate to ensure ongoing projects are not affected by the settlement.
Zachary Robinson, interim CEO of EV US, emphasized the commitment to fundraising integrity and condemned fraudulent activities related to the FTX collapse.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
