(Bloomberg) -- The Charity Commission has launched an inquiry into UK-based Effective Ventures Foundation over its ties to bankrupt crypto exchange FTX.
The Oxford, Oxfordshire-based charity had reported the FTX bankruptcy as a “serious incident”, as FTX’s philanthropic foundation had been a major funder of Effective Ventures, according to a statement Monday by the Charity Commission.
The commission said there is “no indication of wrongdoing” by the charity’s trustees. However, signs of potential risks to the charity’s assets persist and as such the inquiry has been opened to establish facts and help ensure the trustees protect the charity’s assets.
“We understand the Commission’s desire to exercise extra scrutiny, especially given the scale and profile of the FTX situation, and we will be cooperating fully,” said Howie Lempel, interim CEO of Effective Ventures, in a statement.
The watchdog’s inquiry will examine the extent of any risk to the charity’s assets as well as the governance and administration of the charity by its trustees, including relationships between the charity’s trustees and funders. It may extend the scope of its inquiry if further regulatory issues arise.
“The trustees have carefully assessed the financial situation and the charity is not reliant on the FTX-related funds for its future operations,” Lempel said.
The Charity Commission declined to comment beyond the press release.
FTX founder Sam Bankman-Fried was once worth $26 billion and had promised to give away his money to charity. That was before his empire collapsed, and he was removed from the website for the Giving Pledge, a promise by billionaires to donate a bulk of their wealth to charitable causes.
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