Breaking News: Crypto Charity Probed by UK Government for Actions During FTX Collapse
A recent investigation by the UK government’s Charity Commission found that Effective Ventures Foundation, a charity funded by FTX, acted swiftly and responsibly to safeguard its funds following the collapse of FTX. The charity received £3.3 million in donations, which were ringfenced to protect them. Additionally, the trustees obtained a Defense against Money Laundering from the National Crime Agency to secure the funds. They also reached a settlement agreement for the repayment of funds received from FTX in 2022, based on independent legal advice.
Trustees’ Response and Resignations
- The trustees of Effective Ventures Foundation took appropriate measures to protect the charity’s funds and fulfilled their legal duties diligently and promptly.
- The charity received £3.3 million in donations, which were immediately ringfenced.
- The trustees obtained a Defense against Money Laundering from the National Crime Agency to safeguard the funds.
- They reached a settlement agreement for the repayment of funds received from FTX in 2022.
- The decision was made following independent legal advice.
- Two trustees with connections to FTX resigned from their positions at the charity during the investigation.
Repayment and Settlement
- Effective Ventures Foundation decided to repay the funds received from FTX, amounting to $4.3 million.
- This repayment equaled the total amount received from FTX and the FTX Foundation in 2022.
- Zachary Robinson, interim CEO of EV US, stated that both EV UK and EV US collectively paid $26.8 million to the FTX estate, covering all funds received from FTX.
- This settlement ensures that EV’s projects can continue fundraising without using donations to cover the settlement costs.
- The organization strongly denounces fraud and condemns the actions associated with Sam Bankman-Fried’s conviction.
Hot Take: Conclusion and Acknowledgment
- The trustees of Effective Ventures Foundation took appropriate measures to protect the charity’s funds and fulfilled their legal duties diligently and promptly.
- The charity received £3.3 million in donations, which were immediately ringfenced.
- The trustees obtained a Defense against Money Laundering from the National Crime Agency to safeguard the funds.
- They reached a settlement agreement for the repayment of funds received from FTX in 2022.
- The decision was made following independent legal advice.
- Two trustees with connections to FTX resigned from their positions at the charity during the investigation.
Repayment and Settlement
- Effective Ventures Foundation decided to repay the funds received from FTX, amounting to $4.3 million.
- This repayment equaled the total amount received from FTX and the FTX Foundation in 2022.
- Zachary Robinson, interim CEO of EV US, stated that both EV UK and EV US collectively paid $26.8 million to the FTX estate, covering all funds received from FTX.
- This settlement ensures that EV’s projects can continue fundraising without using donations to cover the settlement costs.
- The organization strongly denounces fraud and condemns the actions associated with Sam Bankman-Fried’s conviction.
Hot Take: Conclusion and Acknowledgment
- Effective Ventures Foundation decided to repay the funds received from FTX, amounting to $4.3 million.
- This repayment equaled the total amount received from FTX and the FTX Foundation in 2022.
- Zachary Robinson, interim CEO of EV US, stated that both EV UK and EV US collectively paid $26.8 million to the FTX estate, covering all funds received from FTX.
- This settlement ensures that EV’s projects can continue fundraising without using donations to cover the settlement costs.
- The organization strongly denounces fraud and condemns the actions associated with Sam Bankman-Fried’s conviction.
Hot Take: Conclusion and Acknowledgment
In conclusion, the Charity Commission’s probe into Effective Ventures Foundation’s actions during the FTX collapse has confirmed the trustees’ diligence and rapid response to protect the charity’s funds. The repayment of funds and the settlement agreement demonstrate the organization’s commitment to transparency and accountability. Despite the challenges posed by FTX’s collapse, the charity has taken decisive steps to safeguard its resources and uphold its mission.
Sources:
Charity Inquiry Report
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