Last week’s collapse of cryptocurrency exchange FTX has left many investors uncertain about whether they can recover their funds. Also left high and dry are recipients and would-be recipients of philanthropy funded through the exchange, including some researchers, Science reports.
According to The Wall Street Journal, FTX held $16 billion in investor deposits, more than half of which it had lent to a sister company. But the exchange paused withdrawals after investors learned of this close financial relationship and tried to pull billions of dollars out of it. On Friday (November 11), FTX filed for bankruptcy. It is now reportedly under investigation by the Securities and Exchange Commission and the Justice Department .
Many of the grants given or promised by foundations linked to FTX were for organizations or groups focused on effective altruism (EA), an approach to philanthropy espoused by FTX founder and Chief Executive Sam Bankman-Fried in which ...
