Media Organizations To Return Grants By SBF

After the charges were filed by the justice department, the media companies that received money from the former FTX CEO, SBF, or his foundations, are freezing the cash.

The business tycoon has been charged with fraud, money laundering, presenting a fake financial picture of his organization, and using customers’ money. He is facing extradition to the U.S.

advertisement

The companies reconsidering SBF grants

ProPublica, a non-profit organization, on Tuesday, announced that they will be returning the 1.6 million USD that they got from SBF’s foundation, Building A Stronger Future. This money was supposed to be used for public health, biosecurity, and coronavirus. It was part of a 3-year grant of 5 million USD. The firm stated that it would find other ways for the fund. On the day, SBF stepped down as the head of FTX and filed for bankruptcy in the U.S. Court, ProPublica suspended all its grants. However, it is still unclear where this money will go.

Vox Media was given 200,000 USD by SBF’s family foundation and the company has also decided to return all the money. The spokeswoman for Vox told that they have already spent 14,000 USD for issues like climate change, fighting global poverty, and other challenges of society, in the month of August, For Vox as well it remains unclear how they will find a new funding partner or return the spent money.

Also read: FTX’s SBF Signs Extradition Paper, Will Fly to US on Wednesday

The news organization Intercept is reconsidering the grant of 500,000 USD that was given to them as a part of a 4 million USD grant. “At this time, we are still gathering the information we need to make a principled decision in accordance with our mission and values,” spokesman Rodrigo Brandao said on Tuesday. Earlier the company said that this has left a hole in their funding pocket.

The company Semafor accepted SBF’s grant in the month of May, this year with the hope that they would be able to carry independent journalism. However, they are reconsidering and waiting for the authorities to take a decision.

Also read: Amid FTX Contagion, Crypto Traders Now Face Another Massive Risk

When were these fundings made?

The funding, investments, and generous gifts made by SBF to newsrooms were part of a larger pattern that included roughly $40 million in political donations this cycle. This was large to Democratic-aligned groups. Before fraud allegations were made public and FTX was largely regarded as one of the more responsible businesses in the cryptocurrency market.

Shourya is a crypto fanatic who has developed interest in Business Journalism in the past few years. Currently, working as a writer with Coingape, Shourya is also an avid reader. Apart from writing, you can find her attending poetry shows, exploring cafes and watching cricket. As she says, “dogs are my home,” her first rescue of a dog was at the age of 7! She has constantly been speaking up for mental health and the rainbow pride.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.