Fun

Former FTX Executive Accused of Fueling a Charity Through Discounted FTT Purchase

News Feed - 2023-02-16 12:02:36

Former FTX Executive Accused of Fueling a Charity Through Discounted FTT Purchase


A former executive of FTX allegedly earned profits for a charity by purchasing discounted FTX tokens, FTT, before they became available to the public at $0.05 per unit, according to a report citing anonymous sources. Ruairi Donnelly, the former chief of staff at FTX, has been accused of donating the tokens to Polaris Ventures, a charitable organization based in Switzerland, which later sold the FTT for millions of dollars. Anonymous Sources Claim Polaris Ventures Gained Most of Its Wealth From FTT Transfer in 2019


According to a report from the Wall Street Journal (WSJ) on Tuesday, a charity associated with an FTX executive benefited by obtaining ftx tokens (FTT) at a discounted price. The charity in question is Polaris Ventures, a Swiss organization that claims to support artificial intelligence (AI) and effective altruism, anonymous sources familiar with the matter told the WSJ.


One specific AI organization that Polaris Ventures supported was the Cooperative AI Foundation, which received $15 million to support its cause and research. WSJ reporter Alexander Saeedy cites anonymous sources who claim that former FTX chief of staff Ruairi Donnelly purchased FTX tokens (FTT) at a discounted rate of $0.05 per unit, which was reportedly the going FTX employee discount at the time.


The sources allege that Donnelly used $562,000 of his own salary to acquire FTT at this rate. Saeedy’s report suggests that Donnelly then donated the funds via a grant to Polaris, and that “the foundation made millions of dollars selling the tokens after they began trading publicly at $1 in 2019 and 2020, while Mr. Donnelly was still working at FTX.”


Donnelly’s lawyer stated that the FTT in question did not belong to FTX and was intended to pay his client’s unpaid wages. “To be absolutely clear, the FTT that Mr. Donnelly directed to be donated on his behalf to Polaris was not FTX’s funds,” the attorney said. The attorney also noted that $30 million of Polaris’ funds were stuck on FTX, and that the foundation is a major creditor in FTX’s bankruptcy case.


Anonymous sources cited in the report further suggest that most of the foundation’s wealth initially came from the FTT transfer in 2019. The same sources concluded that Donnelly is currently attempting to sell bankruptcy credits for a fraction of their value. Tags in this story AI research, alternative investments, anonymous sources, Bankruptcy Case, charitable donations, Cooperative AI Foundation, Cryptocurrency, Digital Assets, Digital Currency, Digital Tokens, employee discount, Financial Markets, Financial Technology, FTT, FTT Token, ftx, FTX Token, fundraising, Polaris Ventures, Ruairi Donnelly, token sale, unpaid wages, Virtual Currency


What are your thoughts concerning the case of Polaris Ventures and the reported FTT deal in 2019? Share your thoughts in the comments below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. FTX Bankruptcy Judge Denies US Trustee"s Request for Independent Examiner NEWS | 6 mins ago Bitcoin Ordinal Inscriptions Surge Past 100,000 Mark, Spurring Development of Supporting Infrastructure NEWS | 2 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin, Ethereum Technical Analysis: BTC, ETH Extend Gains Following US Inflation Report Next articleBiggest Movers: DOGE, SHIB Surge as Elon Musk Tweets Dog CEO Pictures Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"


The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto

News Feed

Gareth Jenkinson11 hours agoFTX​ releases restructuring plan, hints at rebooted offshore exchangeReams of dockets from FTX have been filed alongside a proposed reorganization plan that could see it resurrected as an of
Canadian regulator fines Binance $4.4M for AML and CFT violations
Turner Wright5 hours agoCanadian regulator fines Binance $4.4M for AML and CFT violationsFINTRAC reported that Binance facilitated 5,902 separate transactions of $10,000 or more in crypto from June 2021 to July 2023 and
Square Adds $170 Million More in Bitcoin to Balance Sheet — Company Now Holds 5% of Total Cash Reserves in BTC
Square Adds $170 Million More in Bitcoin to Balance Sheet — Company Now Holds 5% of Total Cash Reserves in BTC Square has bought more bitcoin, adding $170 mill
20 Blockchain Surveillance Firms Monitor Crypto Networks, But Some Apps Show Inaccuracies
20 Blockchain Surveillance Firms Monitor Crypto Networks, But Some Apps Show InaccuraciesDuring the last few years, blockchain surveillance has increased a great deal and in the ear
Bitcoin To $13 Million? Robert Kiyosaki Backs Michael Saylor’s Bold Vision
Este artículo también está disponible en español. Robert Kiyosaki, a popular author and Bitcoin supporter, is back in the headlines after claiming that Bitcoin can hit $1
Australia’s Bitcoin sentiment jumps after US spot Bitcoin ETF approvals
Brayden Lindrea2 hours agoAustralia’s Bitcoin sentiment jumps after US spot Bitcoin ETF approvalsThe rise in positive sentiment was skewed heavily by those aged 55 and above, where Bitcoin sentiment increased by 100%.8
The Largest US Options Exchange Cboe Applies to List Vaneck’s Bitcoin ETF
The Largest US Options Exchange Cboe Applies to List Vaneck"s Bitcoin ETF The Chicago Board Options Exchange (Cboe) has applied to list the Vaneck Bitcoin Trust,
GameSwift CEO Wojciech Gruszka Explains Why Developing a Steam-Like Web3 Platform Is a Gamechanger
GameSwift CEO Wojciech Gruszka Explains Why Developing a Steam-Like Web3 Platform Is a Gamechanger GameSwift is a one-stop gaming ecosystem that aims to introduce cross-chain inter
Ukrainian Steals Bitcoin From Russian Darknet Market, Donates to Charity
Ukrainian Steals Bitcoin From Russian Darknet Market, Donates to Charity A Ukrainian living in the U.S. has reportedly hacked a major drug market on the Russian dark web, diverting
BNB Chain puts up $1M reward to attract memecoin devs
Ezra Reguerra13 hours agoBNB Chain puts up $1M reward to attract memecoin devsParticipating memecoins must have at least one security audit and open-source the project on BscScan.1497 Total views35 Total sharesListen to
Polkadot Price Soars 15% In One Day — Here’s Why $7.5 Might Be The Next Target
Este artículo también está disponible en español. The cryptocurrency market saw some of its best days over the past week, with several altcoins enjoying the positive clim
Cryptocurrency and Safety Money, Bitcoin Vault Breaks Stereotypes
Cryptocurrency and Safety Money, Bitcoin Vault Breaks Stereotypes Cryptocurrency theft has boomed over the past couple of years and this is no hoax. Over USD 1.4