FTX's 'Effective Altruism' Future Fund Team Resigns

In an open letter, the team said it was unable to perform their work or process grants and have "fundamental questions" about the legitimacy and integrity of business operations.

AccessTimeIconNov 11, 2022 at 3:45 a.m. UTC
Updated Nov 11, 2022 at 3:13 p.m. UTC

The team behind the FTX Future Fund, one of the exchange giant's philanthropic arms, resigned on Thursday in an open letter, posted to Twitter by journalist Teddy Schleifer.

The group wrote that it was "devastated that it looks like there are many committed grants that the Future Fund will be unable to honor."

"We are so sorry that it has come to this," the letter said, adding: "To the extent that the leadership of FTX may have engaged in deception or dishonesty, we condemn that behavior in the strongest possible terms. We believe that being a good actor in the world means striving to act with honesty and integrity."

The decision adds to the fallout from FTX's dramatic liquidity problems. FTX fell under scrutiny last week after CoinDesk reported that the balance sheet of its sister company, Alameda Research was overly weighted with FTX's FTT token.

FTX founder and CEO Sam Bankman-Fried has tried to brand himself as the world's "most generous billionaire" and pledged to donate a significant amount of his wealth and make significant corporate donations. FTX ran two philanthropic arms.

The FTX Foundation, a traditional charity, has donated to health, pollution and climate initiatives. The FTX Future Fund has supported moonshot projects in fields like biosecurity and AI safety focused on "long-term improvements for humankind." In March, FTX said it was going to deploy $1 billion through the Future Fund at a rate of $100 million a year.

During the bull market, some thought that Web3 wealth would power a new generation of philanthropy, similar to how Web2 spurred the creation of organizations like the Bill and Melinda Gates Foundation.

Bankman-Fried has seen his personal wealth plummet by nearly 94% amid the rapid devaluation of FTX and FTT, and vanished from the Bloomberg Billionaires Index earlier this week. He might be worth even less now, given how one prominent VC that invested in FTX marked down its investment value to zero.


DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.