The FTX Foundation is closing effective altruism funds as senior executives step down. The charity is about to wind down its operations following the near collapse of its parent company and beneficiary FTX.
Crypto industry charity, FTX Foundation, said that its flagship charity fund, FTX Future Fund, is now unable to “operate its operations or grant process” following the failure of its beneficiary. A note published in the Effective Altruism Forum rejected the performance of many of its current projects, saying that “there are many financial contributions that the Future Fund will not be able to honor.”
The FTX Foundation says it has been influenced by a concept called Effective Altruism, a social organization and philosophy where objective evidence is used to determine the best way to use charitable resources, and taking into account factors such as priority of cause and cost effectiveness. . Sam Bankman-Fried, founder and CEO of FTX, and president of the FTX Foundation and president of Alameda Research Caroline Ellison said that he was exposed to these ideas in his early twenties. Officials, who have now resigned from the FTX Foundation, said: “To the extent that FTX management may be involved in fraud or dishonesty, we strongly condemn this practice. strong. strong strong.”
The FTX exchange is currently experiencing one of the worst problems in crypto.
Things started on Sunday with the head of Binance Changpeng Zhao announcing that his company will sell the FTX deposit has entered the FTX close when it became clear that the crypto exchange may not be viable. “We are shocked and deeply saddened to learn of the recent events at FTX,” the statement read.
What is FTX Future Fund?
The new foundation announced ambitious goals when it launched in February 2022, saying it wants to give a total of $1 billion, including $100 million in the first year alone. The foundation has many projects, including its main one called “Future Fund,” with various grants and investment projects that focus on global health, disease prevention, animal welfare, and climate change prevention. machine.
The organization promotes a unique approach to charitable giving, saying it is “especially interested in starting projects that can scale: projects that can start spending tens or hundreds of millions of dollars a year,” the way can affect technology and financial resources. . . The management team, contacted by Decrypt for comment, includes a host of stars from the world of philanthropy.
CEO Nick Beckstead spent more than seven years at the San Francisco-based charity Open Philanthropy and more than 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 key FTX executives.
The Foundation also seeks donations from FTX employees and employees through the FTX Giving Program, using FTX Philanthropy Inc., a non-profit organization organized for tax-exempt purposes. It would appear that this organization has achieved its goals, at least on paper.
According to its website, the FTX Foundation’s total funding has reached more than $190 million to date, with contributions from FTX staff fees, grants and equity totaling $24,712,844. Bankman-Fried was eager to boost its philanthropic credentials before a series of events undermined its business value.