- The UK’s Charity Commission says it opened an investigation into Effective Ventures Foundation on 19 December.
- FTX collapsed in November and is currently in bankruptcy proceedings in the US.
- FTX is said to have been a “significant financier” of Effective Ventures.
The Charity Commission, the regulator that oversees charities in the UK, has announced that it is investigating the charity Effective Ventures Foundation.
On investigation, it was revealed by A Press release Monday, regarding financial deals between charity and decline Cryptocurrency exchange FTX.
Currently, FTX is undergoing bankruptcy proceedings in the US following its November 2022 breakout. Sam Bankman-Fried, the exchange’s founder and former CEO, was arrested in December. Out on bail. The disgraced former crypto executive faces multiple charges, including wire fraud and conspiracy to commit money laundering.
The commission says it opened an investigation into the charity on 19 December 2022.
FTX was a “significant financier” of Effective Ventures
In its announcement on Monday, the Trusts Commission said its investigation into Effective Ventures’ report on FTX’s bankruptcy “Serious incident.” As for the non-profit organization, FTX’s philanthropic arm was “a significant funder” of its charitable activities.
According to the regulator, the Effective Ventures trustees did not commit any wrongdoing in the press release. However, because the charity’s assets may be at risk from the events surrounding the bankruptcy, the inquiry “Establish the facts.”
In essence, the trustees are responsible for ensuring that the trust’s assets are protected and that their actions are consistent with the duties and responsibilities they have.
Therefore, the Commission looks to ascertain whether there are any risks to non-profit assets. It also examines whether the trustees are complying with the law, including the administration and management of the trust.
The commission will issue a report at the end of the investigation.