The scientific community is feeling the aftershocks of FTX’s demise.

by Nov 17, 2022CryptoNews0 comments

Because Sam Bankman-Fried is involved in so many charitable endeavors, the impact of FTX might result in a variety of gifts and investments being clawed back or not fulfilled.

The collapse of the crypto exchange FTX appears to have already had an impact on hundreds of award recipients from a range of charity groups supported by the exchange.

FTX founder Sam Bankman-Fried became noted during the COVID-19 epidemic for supporting a number of projects targeted at “humanity’s long-term prospects.”

The FTX Foundation and its FTX Future Fund were among these, which formally began on Feb. 28 and stated on June 30 that it had made 262 awards and investments totaling $132 million in initiatives, many of which addressed pandemic preparedness, among other scientific interests.

However, the Future Fund’s leadership team announced their resignation in a group post on November 11th, noting:

“We are devastated to report that it is probable that the Future Fund may be unable to honor many committed awards.”

The FTX Foundation and its FTX Future Fund were among these, which formally began on Feb. 28 and stated on June 30 that it had made 262 awards and investments totaling $132 million in initiatives, many of which addressed pandemic preparedness, among other scientific interests.

However, the Future Fund’s leadership team announced their resignation in a group post on November 11th, noting:

“We are devastated to report that it is probable that the Future Fund may be unable to honor many committed awards.”

Building a Stronger Future, another Bankman-Fried-funded charity, has made the first installment of a $5 million donation to the nonprofit investigative reporting group ProPublica, with further money initially expected to be delivered in 2023 and 2024.

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According to an email obtained by Fortune, the remaining monies are on hold until Building a Stronger Future evaluates its finances.

Meanwhile, Molly Kovite, a lawyer and member of the Effective Altruism group, warned in a Nov. 14 post that organizations that received money from an FTX entity in the 90 days preceding the Nov. 11 Chapter 11 filing may be subject to a “clawback” and be required to pay all or some of the money back.

The charitable donor that Kovite represents, Open Philanthropy, later announced in a Nov. 16 post that it was inviting applications from grantees affected by the Future Fund’s demise and that it would examine the submissions and award funds at its discretion.

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