By Associated Press | Updated: 14 November 2022
The rapid collapse of cryptocurrency exchange FTX into bankruptcy last week has also shaken the world of philanthropy, due to the donations and influence of FTX founder Sam Bankman-Fried in the “effective altruism” movement.
The FTX Foundation – and other related nonprofits mostly funded by Bankman-Fried and other top FTX executives – says it has donated $190 million (roughly Rs. 1,540 crore) to numerous causes. Earlier this year, the foundation’s Future Fund announced plans to donate an additional $100 million (roughly Rs. 810 crore), with hopes of donating up to $1 billion (roughly Rs. 8,120 crore) in 2022. Because of the bankruptcy, that won’t be happening now.
And donations to numerous nonprofits, even those that have already received money from groups related to Bankman-Fried, are now in doubt.
FTX, the hedge fund Alameda Research, and dozens of other affiliated companies sought bankruptcy protection in Delaware Friday after the exchange experienced the cryptocurrency equivalent of a bank run. Customers tried to remove billions of dollars from the exchange after becoming concerned about whether FTX had sufficient capital.
Bankman-Fried has resigned from the company. His net worth, estimated earlier this year at $24 billion (roughly Rs. 1,94,970 crore), has all but evaporated, according to Forbes and Bloomberg, which closely track the net worth of the world’s richest people.
On Thursday night, FTX Future Fund’s leadership team resigned, warning grantees that they were unlikely to pay out promised funds.
FTX, the hedge fund Alameda Research, and dozens of other affiliated companies sought bankruptcy protection in Delaware Friday after the exchange experienced the cryptocurrency equivalent of a bank run. Customers tried to remove billions of dollars from the exchange after becoming concerned about whether FTX had sufficient capital.
Bankman-Fried has resigned from the company. His net worth, estimated earlier this year at $24 billion (roughly Rs. 1,94,970 crore), has all but evaporated, according to Forbes and Bloomberg, which closely track the net worth of the world’s richest people.
On Thursday night, FTX Future Fund’s leadership team resigned, warning grantees that they were unlikely to pay out promised funds.
