The cryptocurrency industry charity FTX said its flagship charitable foundation, the FTX Future Fund, is now unable to “carry out its work or process contributions” after its main beneficiary collapsed.
note Participate in the Effective Altruism ForumHe questioned the feasibility of many of his current projects, saying, “There are many committed grants that the Future Fund will not be able to honor.”
The FTX Foundation claims to have been influenced by an ideology called effective altruism, a social and philosophical movement in which objective evidence is used to determine how charitable resources are best used, taking into account factors such as cause-determination and cost-effectiveness. They were exposed to these ideas in their early twenties, Sam Bankman-Fried, founder and CEO of FTX, FTX Foundation board member and co-CEO of Alameda Research, Carolyn Ellison, says.
“To the extent that FTX leadership may have engaged in fraud or dishonesty, we condemn this behavior in the strongest possible terms,” said the executive team, which has now completely resigned from the FTX Foundation.
The FTX exchange is currently undergoing one of the most severe cryptocurrency crises.
It all started last Sunday with Binance CEO Changpeng Zhao Announces His company will sell its property FTX exchange code It has now evolved into a near-collapse of FTX after it became apparent that the cryptocurrency exchange may be insolvent.
“We are shocked and deeply saddened to hear of recent events at FTX,” the note said.
What is the FTX Future Fund?
Relatively newly formed foundation most dangerous Some lofty goals when it launched in February 2022, saying it wanted to part with a total of $1 billion, including $100 million in the first year alone.
The foundation has had many projects, including the largest one called the “Future Fund”, with various grants and investments earmarked for projects focusing on global health, epidemic prevention, animal welfare, and climate change prevention.
The organization promotes a unique approach to philanthropy, saying it is “particularly keen to launch projects that are scalable at scale: projects that can grow to spend tens or hundreds of millions of dollars productively annually,” an approach possibly influenced by technology and venture capital financing. .
Leading group that Decrypt For comment, I included some star-studded biographies from the world of philanthropy.
CEO Nick Bexted spent more than seven years at San Francisco-based charity Open Philanthropy and over a year at Oxford University’s Future of Humanity Institute before joining the organization earlier this year.
The majority of the foundation’s funding was provided by Bankman-Fried himself, along with other senior managers at FTX.
The Foundation has also requested donations from the FTX user base and staff via Provides FTX Program, with the assistance of FTX Philanthropy Inc. A non-profit organization organized for tax exemption purposes.
The organization appears to have achieved its stated goals, at least on paper.
According to its website, the total amount donated by the FTX Foundation To date, it has reached over $190 millionWith contributions from FTX user fees, donations, and matching of $24,712,844.
Bankman-Fried was eager to promote his philanthropic credentials before a series of events wiped out the value of his company.
In June, the founder pledged to give away the majority of his fortune, which at the time was about $22 billion, Signing the bid pledgeA public commitment by many of the world’s richest people, such as Warren Buffett and Bill Gates, to give away most of their wealth.
Bankman-Fried’s philanthropic ambitions may be waning somewhat now; His net worth has reportedly fallen from $26 billion to less than $1 billion at the time of writing, According to Bloomberg data.
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