The regulators from the United Kingdom (UK) initiated an investigation against the trustees of the Effective Ventures Foundation.
Effective Ventures Foundation was significantly funded by FTX’s former CEO & co-founder Sam Bankman-Fried (SBF) in April 2022. At that time SBF grabbed huge popularity for this foundation. SBF donated a huge amount of funds to this organisation and collected huge sympathy from the whole Crypto sector. This foundation is registered in England, Wales, the Netherlands, and the U.S. and provides support to organisations aligned with their goals.
Recently the UK regulators initiated an enquiry against the Effective Ventures Foundation, to figure out whether the trustees fulfill their duties, as well as examine the relationship between trustees and donors.
The Interim CEO of Effective Ventures, Howie Lempel, talked about this investigation officially and confirmed that the foundation will fully cooperate with the investigation. Lempel also confirmed that the foundation has no fund exposure to FTX exchange, so the foundation will operate its work smoothly without any financial pressure.
FTX bankruptcy & Charity donations
Under the leadership of SBF, the FTX exchange lost a huge amount of money because of the misuse of the funds. In the first week of Nov 2022, Exchange failed to give withdrawal of funds to all the users, and finally on 19 Nov exchange filed for bankruptcy with more than 100s of its affiliated companies.
Just a few weeks ago, FTX current CEO Johan Ray III ordered all the people, companies, and entities, including charity foundations, to return the funds to the exchange, which was sent by the FTX exchange on behalf of FTX former officials unethically.
FTX exchange also warned that it will take suitable legal action, if the linked parties will not return the money, in favour of the FTX customers who lost all of their funds on the exchange.