The Charity Commission has launched an inquiry into Effective Ventures Foundation, which has links to failed US cryptocurrency exchange FTX.
The probe has been launched as FTX’s philanthropic foundation was a significant funder of the charity.
While the regulator says there “is no indication of wrongdoing by the trustees” it is concerned about “potential risks to the charity’s assets”.
“The inquiry has been opened to establish facts and help ensure the trustees protect the charity’s assets and are running the charity in line with their duties and responsibilities,” said the Commission.
The investigation will look at whether there is any risk to the charity’s assets and to the extent to which the trustees are complying with their legal duties to protect the charity’s property.
The governance and administration of the charity will also be looked at, including “relationships between the charity trustees and its funders” as well as the identification and management of conflicts of interest.
We’ve opened an inquiry into Effective Ventures Foundation following the bankruptcy of a significant funder.
Read more: https://t.co/zjH1TdysYf pic.twitter.com/Qda9I0YwVP
— Charity Commission (@ChtyCommission) January 30, 2023
According to the charity register Effective Ventures Foundation’s projects include its Giving What We Can that looks at how global poverty charities can be supporters, while its 80,000 Hours project researchs issues around careers choice.
Its total income from donations and legacies for the financial year ending June 2021 was £18.7m and its spending was £14.2m.
FTX was founded in 2019, was the third largest cryptocurrency exchange at its peak two years later, but filed for bankruptcy last year.