The Charity Commission in the United Kingdom has announced that they are investigating a charity called the Effective Ventures Foundation about their relationship with FTX.
According to the official press release, the charity reported its association with FTX as a serious incident because the bankrupt cryptocurrency exchange was its “significant funder.”
The non-departmental department stated that the trustees presented an IRS and adequately carried out their functions and responsibilities. Although the trustees were not involved in any wrongdoing, the charitable organization's commission reported indications of potential risks to its assets.
- The commission also stated that the investigation was undertaken to establish the facts and ensure that the trustees protect the charity's assets.
- It has also sought to confirm whether transactions are consistent with their functions and responsibilities.
- The survey focuses on the extent of risk to the charitable organization's assets. The extent to which trustees comply with their statutory obligations to protect their assets is also reviewed.
- Review the Trustees' governance and administration of the Agency. This includes the relationship between the trustees of the organization and its financial backers.
- The determination and management of conflicts of interest and/or faithfulness will also be analyzed.
“The Commission may expand the scope of the investigation in the event other regulatory matters arise. Upon completion of the investigation, it is the Commission's usual policy to issue a report detailing the issues examined, the actions taken and the results of the investigation."
- The inquiry was opened on December 19 after FTX filed for Chapter 11 bankruptcy in the US while its former CEO Sam Bankman-Fried was arrested in the Bahamas.
- The disgraced CEO was then extradited to the US, where he faces fraud, money laundering, and campaign finance violations charges, among others.