The regulator overseeing approved charities in England and Wales has announced that it has started investigating a charity organization linked to the collapsed crypto exchange, FTX. Regulators believe Effective Ventures Foundation is a charity body tied to the now-bankrupt crypto exchange.
Funding Charities Via FTX
According to the Charity Commission in a recent press release, it has kickstarted the probe into the activities of FTX as a “significant funder” of the UK-based charity organization Effective Ventures.
The commission noted that Effective Ventures had confirmed its ties with FTX, which the regulator sees as a serious event that may impact other assets. Thus, paving the way for the charity regulator to investigate its members.
However, the commission added that there is currently no indication of wrongdoing by the trustees, given that the investigation isn’t concluded yet. Furthermore, the regulator stressed potential risks to the charity’s funds, and the inquiry is geared toward establishing its involvement with FTX.
The regulator aims to ensure that trustees are committed to protecting the asset of the charity and running the organization in line with their assigned duties. Meanwhile, the Charity Commission revealed that the trustees are fully cooperating with the ongoing investigation and will release the outcomes of its findings in due time.
It is worth noting that the commission opened the investigation last month, a few weeks after FTX filed a Chapter 11 bankruptcy in the US and after the arrest of the exchange’s former CEO, Sam Bankman-Fried, in the Bahamas.
In a similar move to the UK, the United States government is closing on charitable entities in the country that benefitted from the FTX funds. Reports show that FTX has donated millions of dollars to various organizations to support their causes.
According to reports, the defunct firm also made donations to several political campaigns that pledged to return the funds. Meanwhile, it is still unclear whether investors and enterprises will be forced to refund FTX debtors through legal means.
FTX Considers Reboot Amid Concerns
After the spectacular downfall of one of the leading crypto exchanges, industry observers believe that FTX would face a tough time reviving its business due to massive trust issues and discriminatory treatment of customers.
After the former FTX CEO, Sam Bankman-Fried, tweeted his support for John Ray as the new chief executive of the crypto exchange, observers quickly pointed out the post’s issues.
In a recent interview, John Ray is reported to have explained to the Wall Street Journal that he is on a mission to revive the troubled crypto exchange despite many of the firm’s executives being accused of criminal misconduct.
Following the interview, some industry players stated that it would take more work for FTX to regain the trust of the crypto community and secure another operating license again.
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