Sam Bankman-Fried Backed Charity Under UK Probe
The inquiry will investigate the extent of the risk to the charity's assets and whether the trustees are properly protecting the assets.
Jan 30, 2023 at 1:29 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/A6DZFPLJIZFTBF6774ULCYUOII.jpg)
Sam Bankman-Fried (Jesse Hamilton, modified by CoinDesk)
The Charity Commission for England and Wales is probing the Effective Ventures Foundation, a charity backed by Sam Bankman-Fried, founder of the bankrupt crypto exchange FTX.
The inquiry will investigate the extent of the risk to the charity's assets and whether the trustees are complying with their duties to protect the assets.
The charity reported FTX's bankruptcy as a "serious incident" because of the significant funds it had received from the exchange's philanthropic arm.
"There is no indication of wrongdoing by the trustees at this time," the Commission said on Monday. "However, there are indications of potential risks to the charity’s assets, and the inquiry has been opened to establish facts and help ensure the trustees protect the charity’s assets and are running the charity in line with their duties and responsibilities."
The Commission added that the trustees are cooperating fully and that it may extend the scope of its enquiry should further regulatory issues emerge.
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Jamie Crawley is a CoinDesk news reporter based in London.
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