FTX charity gifts have complicated recipients’ decisions donations have created a complex dilemma for recipients

In November 2022, the collapse of the FTX exchange and its subsidiaries led to the dissolution of its charitable arm, the FTX Future Fund. The charity arm has promised $1 billion for research scholars at top institutions. Yet, the project’s personnel quit when FTX filed for bankruptcy on November 11, 2022.

Several professors and researchers who were early award winners are still awaiting payment of further funding for their initiatives. According to a story released by Reuters, many FTX grant recipients were pushed to abandon their studies out of fear of payback.

A review of the FTX Future Fund’s operations reveals that the fund was funded by former CEO Sam Bankman-Fried. Many research initiatives, including the safe development of artificial intelligence, the reduction of catastrophic risk, the improvement of institutions, economic growth, great power interactions, and effective altruism, were supported by the awards.

Twenty professors, from major institutions, including Cornell, Princeton, and Brown in the United States and Cambridge in Britain, got gifts from the FTX philanthropic arm totaling more than $100,000 apiece, according to the study. According to further estimates based on these announcements, university-affiliated research endeavors received more than $13 million.

Because the next deadline for fee submission has already passed, many of these academics who got the initial award are now in a difficult position. As a consequence, a significant number of students were compelled to leave the program after the first year.

According to the complaint filed against the cryptocurrency exchange and its founders, those who did get a full grant have an ethical dilemma on whether to utilize the award or return the cash, which may have been stolen client funds.

In an announcement, FTX requested that recipients of payments from FTX’s creditors refund their monies, although it did not name the FTX Futures Fund. A U.S.-based attorney, however, argued that it would depend on the FTX trustees’ willingness to take back tiny contributions, even charitable ones.