I haven’t read too much into this and am probably missing something.
Why do you think FTXFF was receiving grants via north dimension? The brief googling I did only mentioned north dimension in the context of FTX customers sending funds to FTX (specifically this SEC complaint). I could easily have missed something.
Grants were being made to grantees out of North Dimension’s account—at least one grant recipient confirmed receiving one on the Forum (would have to search for that). The trustee’s second interim report shows that FTXFF grants were being paid out of similar accounts that received customer funds.
It’s unclear to me whether FTX Philanthrophy (the actual 501c3) ever had any meaningful assets to its name, or whether (m)any of the grants even flowed through accounts that it had ownership of.
Certainly very concerning. Two possible mitigations though:
Any finding of negligence would only apply to those with duties or oversight responsibilities relating to operations. It’s not every employee or volunteer’s responsibility to be a compliance detective for the entire organization.
It’s plausible that people made some due dilligence efforts that were unsuccessful because they were fed false information and/or relied on corrupt experts (like “Attorney-1” in the second interim trustee report). E.g., if they were told by Legal that this had been signed off on and that it was necessary for tax reasons, it’s hard to criticize a non-lawyer too much for accepting that. Or more simply, they could have been told that all grants were made out of various internal accounts containing only corporate monies (again, with some tax-related justification that donating non-US profits through a US charity would be disadvantageous).
I haven’t read too much into this and am probably missing something.
Why do you think FTXFF was receiving grants via north dimension? The brief googling I did only mentioned north dimension in the context of FTX customers sending funds to FTX (specifically this SEC complaint). I could easily have missed something.
Grants were being made to grantees out of North Dimension’s account—at least one grant recipient confirmed receiving one on the Forum (would have to search for that). The trustee’s second interim report shows that FTXFF grants were being paid out of similar accounts that received customer funds.
It’s unclear to me whether FTX Philanthrophy (the actual 501c3) ever had any meaningful assets to its name, or whether (m)any of the grants even flowed through accounts that it had ownership of.
Seems pretty bad, no?
Certainly very concerning. Two possible mitigations though:
Any finding of negligence would only apply to those with duties or oversight responsibilities relating to operations. It’s not every employee or volunteer’s responsibility to be a compliance detective for the entire organization.
It’s plausible that people made some due dilligence efforts that were unsuccessful because they were fed false information and/or relied on corrupt experts (like “Attorney-1” in the second interim trustee report). E.g., if they were told by Legal that this had been signed off on and that it was necessary for tax reasons, it’s hard to criticize a non-lawyer too much for accepting that. Or more simply, they could have been told that all grants were made out of various internal accounts containing only corporate monies (again, with some tax-related justification that donating non-US profits through a US charity would be disadvantageous).
Ah, thank you!
I searched for that comment. I think this is probably the one you’re referencing.
I know of at least 1 other case.