UK’s Charity Commission announced inquiring into a charity called – Effective Ventures Foundation over its ties 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-ministerial department asserted that trustees submitted an RSI and sufficiently performed their duties and responsibilities. While trustees have not been involved in any wrongdoing, the Charity Commission did point out indications of potential risks to the charity’s assets.
- The commission also said that the inquiry was launched to establish facts and help ensure the trustees protect the charity’s assets.
- It also sought to confirm if the operations are in line with their duties and responsibilities.
- The inquiry is set to focus on the extent of any risk to the charity’s assets. The extent to which the trustees are complying with their legal duties in terms of the protection of their property is also under scrutiny.
- It will examine the governance and administration of the charity by the trustees. This includes relationships between the organization’s trustees and its funders.
- Conflicts of interest identification and management of and/or loyalty will also be analyzed.
“The Commission may extend the scope of the inquiry if additional regulatory issues emerge. It is the Commission’s normal policy after it has concluded an inquiry, to publish a report detailing the issues examined, the action undertaken, and the inquiry’s outcomes.”
- 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.