Effective Ventures Foundation, a charity that focuses on effective altruism causes, has agreed a settlement with the bankruptcy estate of FTX which will see it repay the approximately $26.8 million in donations it received from the defunct crypto enterprise.
Effective Ventures has been under investigation by the Charity Commission in the United Kingdom.
This investigation by regulators is separate from an internal investigation conducted by Effective Ventures. Zachary Robinson, the interim CEO of Effective Ventures US, provided a statement to Civil Society in which he claimed that the internal investigation found no evidence that trustees of the charity knew that Sam Bankman-Fried was engaged in criminal fraud.
FTX funded this UK charity, now it’s under investigation
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However, the charity isn’t revealing additional information about this investigation, citing fears that “doing so could reveal information from people who haven’t consented to their confidences being publicized and could waive important legal privileges that we don’t intend to waive.”
Robinson further claimed they have chosen to increase “the rigor of donor due diligence, and staffing up the in-house legal departments.”
FTX’s bankruptcy estate has actively been pursuing recovery of a variety of donations, both political and philanthropic, that were made with misdirected customer funds.
Bankman-Fried has been found guilty on seven felony charges related to conduct at FTX and Alameda Research.
