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>>The UK government's investigation into Effective Ventures, a charity funded by collapsed crypto exchange FTX, has concluded with the determination that the organization acted diligently in safeguarding funds.

The UK government's investigation into Effective Ventures, a charity funded by collapsed crypto exchange FTX, has concluded with the determination that the organization acted diligently in safeguarding funds.

crypthub

1/24/2025, 11:52:20 AM

Background and Initial Investigation

The UK Charity Commission launched an inquiry into Effective Ventures Foundation, a charity supported by FTX, due to FTX's significant sponsorship role. The investigation aimed to assess the charity's response to the FTX collapse and its potential impact on the organization's funds.

Charity's Proactive Measures to Safeguard Funds

Upon FTX's demise, the trustees of Effective Ventures promptly took action. They ringfenced the £3.3 million in donations received from FTX, obtained a Defense against Money Laundering from the National Crime Agency, and entered into a settlement agreement to repay the funds in 2022 after seeking independent legal advice.

Trustee Changes and Risk Assessment

Two trustees with connections to FTX resigned during the investigation. However, the remaining trustees swiftly evaluated the risks and implemented strategies to protect the charity's assets and ensure continuity. This proactive approach demonstrated their commitment to upholding legal obligations.

Financial Disclosures and Repayments

Reports reveal that Effective Ventures paid $4.3 million to FTX's estate, matching the total received from FTX and the FTX Foundation in 2022. The charity's interim CEO confirmed that both the UK and US branches collectively repaid $26.8 million, ensuring the protection of future donations for their projects.

Condemnation of Sam Bankman-Fried's Actions

Effective Ventures strongly denounced the fraudulent activities of Sam Bankman-Fried, FTX's founder, emphasizing their stance against such unethical conduct.