FTX Future Fund Dilemma: $13M in Grants, But What Now?

• FTX Future Fund was a philanthropic arm of the FTX exchange, with a pledged donation of $1 billion towards research academics.
• After the collapse of FTX, many students and researchers who received grants from the fund were left in limbo over repayment.
• University-affiliated research initiatives received more than $13 million in grants, with several students getting up to $100,000 each.

FTX Philanthropic Donations

The FTX Future Fund was a philanthropic arm of the FTX exchange that pledged to donate $1 billion towards research academics across prestigious universities. After the collapse of FTX in November 2022, many students and researchers who had already received grants from the fund were left in limbo over repayment.

Grants for Research Projects

The grants from the philanthropy arm were focused on various ambitious research projects such as development of artificial intelligence, reducing catastrophic bio-risk, improving institutions and economic growth, among others. University-affiliated research initiatives received more than $13 million in grants from this fund, with several students receiving up to $100,000 each.

Financial Dilemma for Recipients

With the next due date for fee submission already passed after the collapse of FTX, many students have been forced to drop out of their courses due to fear of repayment or lack thereof. Some scholars have also found themselves facing an ethical dilemma regarding payment or acceptance of further funds following their first grant which they now see as tainted money.

Background Information

Former CEO Sam Bankman-Fried sponsored the fund and announced its launch on Twitter February 28th 2022: “We’re thrilled to announce the FTX Foundation’s Future Fund… We plan to deploy >$100M this year…” The donations were specifically targeted at helping improve humanity’s long-term prospects by investing in promising research projects.

Conclusion

The complex dilemma presented by these gifts is one that requires careful consideration by recipients and other stakeholders involved before accepting any donations or payments related to these funds going forward. What is clear is that there needs to be more transparency surrounding how these funds are being managed and what implications it holds for those involved in receiving them – both short term and long term – if any are accepted at all..