Charities funded by Sam Bankman-Fried may be asked to return donations: ‘I had assumed FTX to be a reputable company’

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In order for bankrupt crypto exchange FTX’s account holders and creditors to be repaid, charities that received funding from the company’s philanthropic entities could be asked to return that money.

FTX founder Sam Bankman-Fried’s aggressive embrace of “effective altruism” spewed donations at dozens of nonprofits, but now those groups are facing the possibility that they may be asked to give the money back.

That’s potentially bad news for nonprofits swept up in FTX’s orbit. Bankman-Fried has made charitable giving a central piece of his public image and FTX’s. The company’s website states that it was “founded with the goal of donating to the world’s most effective charities.” ‘I had assumed FTX to be a reputable company’ They include a nonprofit that helps children in rural Northern Karnataka, India connect with mentors in online classrooms to help them study math, science, engineering or medicine. The Rajalakshmi Children Foundation received a $200,000 grant from the FTX Foundation’s Future Fund in spring of 2022 and was hoping for more funding to expand the program, a spokesperson told MarketWatch.

Charities can fight clawback claims Though charities are subject to clawback claims, they aren’t required to instantly fork over money if asked to do so by a trustee . An unresolved question: Do charities deserve protection? Situations where charities’ funding is ensnared in bankruptcy proceedings pose an unresolved public-policy question, Lilien noted: Do nonprofits deserve special protection from clawbacks?

 

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To not profit from the crime all organizations including the Parties should return donation received from FTX!

Why don't you clowns cover all the big banks and discuss thier 'Assets Sold Not Yet Purchased' on their financials....make FTX look like a grade school kid....The whole thing is getting ready to go up in smoke....LOL...You reap what you sow....

Ok now do the politicians.

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Hopefully that means all the politicians, too!!!

Awesome

Like the TheDemocrats party?

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