In May 2024, the UK government’s Charity Commission probe concluded that Effective Ventures Foundation, a charity funded by FTX, acted diligently and quickly to protect charity funds following FTX’s collapse. The inquiry found that the trustees took appropriate steps to protect the charity’s £3.3 million in donations, ringfencing the funds and obtaining a Defence against Money Laundering from the National Crime Agency. Additionally, the charity reached a settlement agreement for the repayment of funds received from FTX in 2022 following independent legal advice. Notably, two trustees with connections to FTX resigned during the investigation, and trustees not connected to FTX acted swiftly to assess risks and protect charitable assets.
The Charity Commission in England and Wales initiated investigations on Effective Ventures (EV) in January 2023 due to FTX being a major sponsor. Effective Ventures disclosed its links to FTX as a severe event that could potentially harm assets, prompting the regulator to probe the charity’s trustees. Reports indicate that the charity paid $4.3 million to the FTX estate, equivalent to the total amount received from FTX and the FTX Foundation in 2022. Furthermore, Zachary Robinson, interim CEO of EV US, confirmed that both EV UK and EV US collectively paid $26.8 million to the FTX estate, covering 100% of the funds received from FTX. This settlement ensures that donations can continue to fundraise without being used to cover the costs, with a strong condemnation of fraud and actions leading to Sam Bankman-Fried’s conviction.
Overall, the Charity Commission’s investigation into Effective Ventures Foundation following FTX’s collapse concluded that the trustees acted diligently and swiftly to protect charity funds. The trustees ringfenced the £3.3 million in donations, obtained a Defence against Money Laundering, and reached a settlement agreement for the repayment of funds received from FTX in 2022. Despite two trustees with FTX connections resigning during the investigation, other trustees not linked to FTX took immediate action to mitigate risks and safeguard charitable assets. Additionally, Effective Ventures disclosed its ties to FTX as a severe event that led to investigations by the Charity Commission in England and Wales. The charity paid $4.3 million to the FTX estate, equivalent to the total amount received from FTX and the FTX Foundation in 2022.
In response to the investigations and FTX’s collapse, Effective Ventures Foundation took proactive steps to protect charity funds and ensure the sustainability of its projects. Trustees acted swiftly to assess risks, implement measures to safeguard assets, and reach a settlement agreement for the repayment of funds received from FTX. Despite challenges posed by two trustees with FTX connections resigning, Effective Ventures remained committed to upholding its legal duties and obligations to protect charitable assets. The Charity Commission’s investigation confirmed the charity’s compliance with its legal duties and praised the trustees for their diligence and prompt action in response to FTX’s collapse.
As a result of the Charity Commission’s findings, Effective Ventures Foundation has demonstrated transparency and accountability in handling funds received from FTX and the FTX Foundation. By ringfencing donations, obtaining legal advice, and reaching a settlement agreement for the repayment of funds, the charity has ensured that its projects can continue to fundraise without disruptions. With a condemnation of fraud and support for legal actions against individuals like Sam Bankman-Fried, Effective Ventures has reaffirmed its commitment to ethical practices and responsible stewardship of charitable funds. Moving forward, the charity remains dedicated to its mission of making a positive impact in the community and upholding the trust and support of its donors and stakeholders.
