The Charity Commission has launched an inquiry into Effective Ventures Foundation following the bankruptcy of the US cryptocurrency exchange FTX. The charity reported this as a serious incident because FTX’s philanthropic foundation was a significant funder of the charity.
The trustees fulfilled their duties and responsibilities in submitting an RSI, and there is no indication of wrongdoing by the trustees at this time. However, there are indications of potential risks to the charity’s assets, and 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.
The inquiry will examine:
- the extent of any risk to the charity’s assets and the extent to which the trustees are complying with their legal duties with regard to the protection of the charity’s property.
- the governance and administration of the charity by the trustees, including relationships between the charity’s trustees and its funders and the identification and management of conflicts of interest and / or loyalty.
The trustees have been cooperating fully with the Commission.
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.
Reports of previous inquiries are available on GOV.UK.
The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its purpose is to ensure charity can thrive and inspire trust so that people can improve lives and strengthen society.
The inquiry was opened on the 19th December 2022, under section 46 of the Charities Act 2011.
In July of last year, the Commission published a blog on charities and the use of cryptoassets.