Former FTX manager’s “charity fund” made $150 million thanks to FTT

A former FTX manager donated the FTT tokens he received at an extremely low price, then sold them after opening the trade for 1 USD.

Former FTX Director's Charity Is Reportedly Earning $150 Million Thanks to FTT
Former FTX Director’s Charity Is Reportedly Earning $150 Million Thanks to FTT

Polaris Ventures, a charity founded by former FTX and Alameda Research Chief of Staff Ruairi Donnelly, is seeking access to the roughly $30 million in assets held in captivity on the exchange that collapsed in November. 2022.

According to the February 14 post of Wall Street JournalMr. Ruairi Donnelly received about 562,000 USD in salary during his time working at FTX, this amount has been converted into FTT at an exchange rate of about 0.05 USD/FTT. The former executive is said to have donated these tokens to Polaris Ventures, a charity he founded in Switzerland. Polaris then sold FTT in 2019 and 2020 this coin was listed on the exchange for 1 USD and made millions of USD.

Using the proceeds, Polaris Ventures continued to invest in crypto in the future and collected up to 150 million USD in assets, but was stuck 30 million USD on FTX when the exchange went bankrupt.

However, instead of trying to withdraw the money, Mr. Donnelly was Wall Street Journal reported that they are trying to sell the right to claim assets on FTX to another party with a transaction value lower than the amount of money stuck, similar to many other investors who do not want to waste time waiting for the bankruptcy proceedings of the company. FTX, which can take years. However, the case of the former FTX manager is more special because the source of his wealth comes directly from FTX, rather than personal property.

Donnelly’s legal team said the charity’s FTT tokens are not FTX’s money and have no liability to compensate other parties.

However, individuals and organizations involved in the exchange’s debts said on December 19, 2022 that they would arrange to return the donations to charities or campaigns. political action and propose legal action to receive profitable payments if any of the funds decline. The exchange itself has also proceeded to ask politicians to return donations and sell cars and office equipment to get more money to pay off debts.

In the context that FTX bankruptcy proceedings in the US are still quite complicated, a number of regulatory agencies have announced investigations of charities. The Charity Commission for England and Wales said in January 2022 that it had launched an investigation into Effective Ventures as FTX was a key backer of the fund.

The FTT token is accused by the US SEC as a security and is a tool used by FTX – Alameda to serve investor fraud.

Synthetic Kyptos

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img