Suspicious donation linked to FTX’s collapse prompts ComChest to file report and initiate return.
ComChest Moves to Return FTX Donation After Collapse
The Community Chest (ComChest) is seeking to return a $360,000 donation it received in 2022 from the now-bankrupt FTX cryptocurrency exchange. The donation, made by FTX’s philanthropic arm, the FTX Foundation, was given in support of the President’s Challenge and ComChest during the Sentosa Golden Jubilee Charity Golf event held in August of that year.
In light of FTX’s bankruptcy, ComChest has filed a suspicious transaction report with the police and is taking steps to return the funds through the appropriate legal channels. Despite this, ComChest has confirmed that the funds disbursed to social service agencies will remain unaffected by this development.
The FTX Foundation’s Involvement
FTX’s collapse in late 2022 has led to ongoing efforts to recover donations and assets linked to the exchange. Sam Bankman-Fried, the former CEO of FTX, has been charged with orchestrating a scheme that allegedly stole $10 billion from FTX clients. Bankman-Fried is currently on trial in New York facing charges of fraud, conspiracy, and money laundering.
FTX and its associated entities, which were once hailed as major players in the philanthropic space, donated substantial sums to political and charitable causes, with the FTX Foundation contributing close to $200 million before the exchange’s liquidity crisis.
Broader Implications of FTX’s Collapse
The collapse of FTX has sparked a broader effort to return donations linked to the exchange’s former management. High-profile organizations such as the Metropolitan Museum of Art in New York City have announced plans to return donations from FTX. Meanwhile, ComChest’s investigation continues alongside other Singapore-based charities that have also reported suspicious donations.
ComChest has assured the public that funds already allocated to benefiting agencies will not be impacted by the return of the donation.
