The UK regulator is investigating a charity linked to FTX.

The Commission for the Regulation of Registered Charities in England and Wales has announced that it has opened an investigation into the Effective Ventures Foundation linked to bankrupt crypto exchange FTX.

In a notification dated January 30, the Trust Authority said It initiated the investigation because FTX is a “significant financier” of Effective Ventures. According to the commission, Effective Ventures declared its relationship with FTX a “serious incident” that could affect other assets, opening the door for the regulator to investigate its managers.

“There is no wrongdoing on the part of the trustees at this time,” the commission said. “However, there are indications of potential risks to the trust’s assets and an investigation is open to establish the facts and enable the trustees to safeguard the trust’s assets and manage the charity in accordance with their duties and responsibilities.”

Following the bankruptcy of a major funder, we launched an investigation into Effective Ventures Foundation.

read more: https://t.co/zjH1TdysYf pic.twitter.com/Qda9I0YwVP

— Charities Commission (@ChtyCommission) January 30, 2023

The Trusts Commission said the trustees would “cooperate fully” as part of the investigation and publish a report on their findings. The regulator launched an investigation on December 19 – after FTX A bankruptcy petition was filed in the US and former CEO Sam Bankman-Fried was arrested in the Bahamas.

In the United States, charities are called Previously benefited from FTX funds The transaction was the target of bankruptcy proceedings—the company donated millions of dollars to various groups and causes. Many political campaigns He promised to return the funds linked to FTX or Bankman-Fried, but it is unclear whether companies and investors would be legally compelled to “pay back” the exchange’s creditors.

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