The Charity Commission, responsible for regulating charities in England and Wales, has launched an investigation into the Effective Ventures Foundation.
The inquiry was prompted by the recent bankruptcy filing of crypto exchange FTX, which was a significant funder of the foundation.
The commission has stated that there are indications of potential risks to the charity’s assets, and the inquiry aims to establish the facts and ensure the protection of these assets.
The trustees of the Effective Ventures Foundation are fully cooperating with the investigation. A report on the findings will be released by the Charity Commission.
The inquiry was opened on December 19th, following the Chapter 11 bankruptcy filing of FTX in the United States and the arrest of former CEO Sam Bankman-Fried in the Bahamas.
Charitable organizations in the United States that previously received funds from FTX have been targeted in the exchange’s bankruptcy proceedings. Political campaigns have pledged to return funds linked to FTX or Bankman-Fried.
The future of the FTX funds remains uncertain, and it is unclear if businesses and investors will be required to legally refund the exchange’s debtors.