UK regulator investigates charity linked to FTX

The committee successful complaint of regulating registered charities successful England and Wales has announced it had begun investigating Effective Ventures Foundation, an enactment tied to bankrupt crypto speech FTX.

In a Jan. 30 announcement, the Charity Commission said it had launched the enquiry owed to FTX being a “significant funder” of Effective Ventures. According to the commission, Effective Ventures reported its ties to FTX arsenic a “serious incident” perchance affecting different assets, opening the doorway for the regulator to analyse its trustees.

“There is nary denotation of wrongdoing by the trustees astatine this time,” said the commission. “However, determination are indications of imaginable risks to the charity’s assets, and the enquiry has been opened to found facts and assistance guarantee the trustees support the charity’s assets and are moving the foundation successful enactment with their duties and responsibilities.”

— Charity Commission (@ChtyCommission) January 30, 2023

The Charity Commission reported that the trustees were “cooperating fully” arsenic portion of the investigation, and it volition merchandise a study connected its findings. The regulator opened the enquiry connected Dec. 19 — aft FTX had filed for Chapter 11 bankruptcy successful the United States and erstwhile CEO Sam Bankman-Fried was arrested successful the Bahamas.

Related: Sam Bankman-Fried seeks to entree FTX funds

In the United States, charitable organizations that previously benefited from FTX funds person reportedly been targeted amid the exchange’s bankruptcy proceedings — the steadfast made millions of dollars successful donations to assorted groups and causes. Many governmental campaigns person pledged to instrumentality funds tied to FTX oregon Bankman-Fried, but it’s unclear whether businesses and investors volition beryllium forced to legally ‘refund’ the exchange’s debtors.