Re: 1, the Future Fund was a collection of various entities, grants were distributed from a variety of different entities. Some came from FTX Foundation Inc. It did not file for bankruptcy. Assuming 1) the entity that wrote the grant did not file for bankruptcy, but 2) the money ultimately came from a now bankrupt entity, grantees may still be asked to return money. This is because under 11 U.S.C.A. § 550(a)(2), the bankruptcy trustee can recover the transferred property—here, money in the form of a grant—from subsequent transferees of the initial transferee (i.e., the entity that wrote the grant), and the grantee would be a subsequent transferee.
There are many, many factors that will determine whether they will actually ask the grantee to return the money, including the cultural practices of the law firms who end up on this case. So I don’t mean to suggest one way or the other whether this is likely to happen, just that the fact the grantmaking entity itself is not bankrupt would not insulate the grantee from potential clawback if the money ultimately came from an entity that has filed for bankruptcy, which almost all FTX business entities have.
Re: 1, the Future Fund was a collection of various entities, grants were distributed from a variety of different entities. Some came from FTX Foundation Inc. It did not file for bankruptcy. Assuming 1) the entity that wrote the grant did not file for bankruptcy, but 2) the money ultimately came from a now bankrupt entity, grantees may still be asked to return money. This is because under 11 U.S.C.A. § 550(a)(2), the bankruptcy trustee can recover the transferred property—here, money in the form of a grant—from subsequent transferees of the initial transferee (i.e., the entity that wrote the grant), and the grantee would be a subsequent transferee.
There are many, many factors that will determine whether they will actually ask the grantee to return the money, including the cultural practices of the law firms who end up on this case. So I don’t mean to suggest one way or the other whether this is likely to happen, just that the fact the grantmaking entity itself is not bankrupt would not insulate the grantee from potential clawback if the money ultimately came from an entity that has filed for bankruptcy, which almost all FTX business entities have.