A UK-based charity is being probed by regulators over its ties to collapsed crypto exchange FTX.
In a statement issued on Monday, the Charity Commission announced that it is launching an official inquiry into Effective Ventures Foundation, which received much of its funding from Future Fund, the charitable arm of Sam Bankman-Fried’s now-bankrupt firm. The charity previously described the collapse as a “serious incident.”
According to the statement, there is no indication of wrongdoing by the charity. However, it needs to be established that the organization’s trustees are “running the charity in line with their duties and responsibilities.”
The Charity Commission says that it will focus specifically on any risks to the charity’s assets, and any potential conflicts of interest arising from relationships between trustees and funders.
Read more: Bankman-Fried agrees to US extradition as FTX hunts down donations
We understand the Commission’s desire to exercise extra scrutiny, especially given the scale and profile of the FTX situation, and we will be cooperating fully,” said Effective Ventures’ interim CEO Howie Lempel.
“We have kept the Commission informed of our actions throughout the process and note that the Commission has confirmed that we complied with our duties in making a serious incident report,” he added.
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Source: https://protos.com/ftx-funded-this-uk-charity-now-its-under-investigation/