Page 12 - aruba-today-20221115

A12 BUSINESS
Tuesday 15 November 2022
FTX bankruptcy also endangers

founder’s philanthropic gifts

Building a Stronger Future,
a foundation funded by
Bankman-Fried, that the
remaining two-thirds of its
$5 million grant to report
on pandemic prepared-
ness and biothreats is now
on hold.
ProPublica received one-
third of the grant in Febru-
ary and expected one-
third annually until 2024.
The nonprofit said Building
a Stronger Future is assess-
ing its finances and that it
was talking to other funders
Signage for the FTX Arena, where the Miami Heat basketball
team plays, is illuminated on Saturday, Nov. 12, 2022, in Miami. about taking on some of its
Associated Press grant portfolio.
“Regardless of what hap-
By THALIA BEATY and protection in Delaware pens with the remainder of
GLENN GAMBOA Friday after the exchange the grant, we are deeply
Associated Press experienced the crypto- committed to this impor-
NEW YORK (AP) — The rap- currency equivalent of a tant work and the team we
id collapse of cryptocur- bank run. Customers tried have assembled to pursue
rency exchange FTX into to remove billions of dol- it,” the nonprofit said in a
bankruptcy last week has lars from the exchange af- statement.
also shaken the world of ter becoming concerned Bankman-Fried, 30, is the
philanthropy, due to the about whether FTX had suf- best-known proponent of
donations and influence ficient capital. the “effective altruism”
of FTX founder Sam Bank- Bankman-Fried has re- social movement which
man-Fried in the “effective signed from the company. believes in prioritizing do-
altruism” movement. His net worth, estimated nations to projects that will
The FTX Foundation and earlier this year at $24 bil- have the largest impact on
other related nonprofits lion, has all but evaporat- the most number of peo-
mostly funded by Bank- ed, according to Forbes ple. Dustin Moskovitz, co-
man-Fried and other top and Bloomberg, which founder of Facebook and
FTX executives says it has closely track the net worth current Asana CEO and
donated $190 million to of the world’s richest peo- co-founder, and his wife
numerous causes. Earlier ple. Cari Tuna, are also major
this year, the foundation’s On Thursday night, FTX funders and backers of the
Future Fund announced Future Fund’s leadership movement, which also em-
plans to donate an ad- team resigned, warning phasizes that the lives of all
ditional $100 million, with grantees that they were people should be weight-
hopes of donating up to $1 unlikely to pay out prom- ed equally, regardless of
billion in 2022. Because of ised funds. where they live now or if
the bankruptcy, that won’t “We are devastated to they will inhabit the earth
be happening now. say that it looks likely that generations in the future.
And donations to numer- there are many committed “I wanted to get rich, not
ous nonprofits, even those grants that the Future Fund because I like money but
that have already re- will be unable to honor,” because I wanted to give
ceived money from groups the team wrote in a joint that money to charity,”
related to Bankman-Fried, post in the Effective Altru- Bankman-Fried told an
are now in doubt. ism Forum. “We are so sorry interviewer in a YouTube
FTX, the hedge fund Alam- that it has come to this.” video called “ The Most
eda Research, and dozens ProPublica, the investiga- Generous Billionaire,” pub-
of other affiliated compa- tive journalism nonprofit, lished in January last year
nies sought bankruptcy said it has been told by by producer Nuseir Yassin.
Yassin said he is disappoint-
ed Bankman-Fried’s down-
fall is dragging down the
idea of philanthropy, in ad-
dition to destabilizing cryp-
tocurrency markets and
customers losing funds.
“The third terrible outcome
is loss of faith in the giving
world, in the ‘effective al-
truism’ world,” Yassin said.
“And I find that to be the
saddest one.” q