• UK’s Charity Commission has announced that it is investigating the charity organization Effective Ventures Foundation.
• The inquiry is related to funding deals between the charity and collapse cryptocurrency exchange FTX.
• FTX was a „significant funder“ of Effective Ventures.
The UK’s Charity Commission has revealed that it is carrying out an investigation into the charity organisation Effective Ventures Foundation. This inquiry is related to the funding deals between the charity and the now-collapsed cryptocurrency exchange FTX.
The Commission, which is responsible for regulating charity organisations in the UK, announced the investigation via a press release on Monday. The inquiry was opened on 19 December 2022, following the news of FTX’s bankruptcy proceedings in the United States.
FTX was founded by former CEO Sam Bankman-Fried, who was arrested in December and is out on bail. He is facing multiple charges, including wire fraud and conspiracy to commit money laundering.
According to the Commission’s announcement, the inquiry into Effective Ventures stems from the charity’s report that FTX’s bankruptcy was a „serious incident“. The report also revealed that the philanthropic arm of FTX had been a „significant funder“ of the charity’s activities.
The Charity Commission is currently investigating if the charity breached any regulations in regards to its financial management, conflicts of interest, and any potential misappropriation of funds.
The Commission also noted that it is working with other regulators, including the US Bankruptcy Court and the Financial Conduct Authority, in order to ensure that the charity’s activities are in line with the law.
In the press release, the Commission confirmed that it is making sure that the charity is being transparent about its dealings and that it is taking all necessary steps to ensure that the charity’s assets are protected. The Commission is also looking into whether any funds have been used for purposes other than what they were intended for.
The investigation is ongoing and no further details have been revealed at this time. However, the Commission is expected to make an announcement once the inquiry is complete.