UK's Charity Commission has launched a probe against Effective Ventures Foundation after the charity said that the now-bankrupt FTX was a "significant funder of the charity."
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The British regulator said in a press release there are "indications of potential risks" to the charity’s assets, which is why the Commission has opened the inquiry to help ensure the trustees "protect the charity’s assets and are running the charity in line with their duties and responsibilities."
The Commission now wants to find out how much the charity was exposed to FTX and the extent to which the trustees have been complying with their legal duties with regard to the protection of the charity's property.
FTX filed for Chapter 11 bankruptcy protection in the US in early November after it had faced a liquidity crisis. The Bahamas-based trading platform owes over $3 billion to the top 50 creditors.
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