FTX seeks to recover charitable donations made by Sam Bankman-Fried

FTX’s new board is making an attempt to get better thousands and thousands of {dollars} in donations made by the trade and its longtime CEO, Sam Bankman-Fried, experiences the Wall Avenue Journal.

As of the top of September, the Future Fund, the charitable arm of FTX, had donated greater than $160 million to greater than 110 nonprofit organizations, together with biotech startups and college researchers creating Covid-19 vaccines and dealing on research. on pandemics, in addition to non-profit organizations from India, China and Brazil.

In keeping with the information, the Future Fund allotted $3.6 million to AVECRIS, an organization engaged on a genetic vaccine platform, and one other $5 million was donated to Atlas Fellowship for scholarships and summer season packages at San Francisco institutes.

A Bankman-Fried spokesman stated charitable donations weren’t produced from buyer deposits, however from earnings from operations.

The charitable arm was introduced in February 2022 with plans to deploy greater than $100 million in its first 12 months and attain as much as $1 billion in donations.

Regardless of the drop in cryptocurrency costs, donations continued. On September 23, the Future Fund’s Twitter profile introduced “a considerable fraction” of the capital that can go towards analysis and initiatives engaged on danger administration for synthetic normal intelligence (AGI), with funding of as much as $1.5 million. , in addition to hundreds of {dollars} in rewards for individuals who “finest criticize our views” on the way forward for synthetic intelligence.

FTX’s donations to political events and candidates are additionally being investigated by US prosecutors. Bankman-Fried was the second largest “CEP contributor” to Joe Biden’s 2020 presidential marketing campaign, with some $5.2 million in donations.

The chargeback provisions might drive corporations and traders to return billions of {dollars} paid within the months earlier than the cryptocurrency trade collapsed, BoxNews reported. FTX’s new management states that “a number of recipients of contributions or different funds” have contacted the corporate to return the funds.

On Jan. 4, Bankman-Fried pleaded not responsible to all felony costs he faces in reference to the collapse of the cryptocurrency trade, together with wire fraud, securities fraud, and marketing campaign finance violations. Since December 22, he has been below home arrest at his mother and father’ residence in California.

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