The collapse of the once prominent FTX exchange in November 2022 left many of the recipients of its generous donations in limbo. FTX’s philanthropic arm, Future Fund, had pledged over $1 billion for research purposes in esteemed universities across the world for a variety of projects, such as artificial intelligence and economic growth.

Twenty academics from prestigious universities, such as Cornell, Princeton, and Brown, as well as Cambridge in Britain, were among those who received grants totaling more than $100,000 each. This, according to reports, amounts to more than $13 million towards university-affiliated research initiatives.

The FTX Future Fund seemed to be in it for the long haul. Former CEO Sam Bankman-Fried himself was the main sponsor of the grant, which aimed to improve humanity and generate more effective altruism. Unfortunately, the collapse of the exchange has put previous recipients in an ethical dilemma.

As the due date for the fee submission had already passed, many of the students were forced to drop out of the course, forgoing the opportunity for further growth. Those who did receive their full grant are now facing the question of whether or not to use the grant or return the funds, as some of the money may be part of customers’ funds stolen from FTX, a claim being investigated by a lawsuit.

FTX asked, in a statement, for those who received payments from the debtors in the FTX bankruptcy filing to return the funds. However, the FTX statement did not make any specific references to FTX Futures Funds, so it’s unclear whether previous recipients of their grants will have to return their money or not.

The story of FTX’s philanthropic arm reveals an interesting situation between those who have an ambition to give and those who have the chance to receive, both subject to the ever-changing circumstances of a larger social and economic context.



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