According to a recent report, a charity associated with an FTX executive benefited by obtaining ftx tokens (FTT) at a discounted price.
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.
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.
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