FTX, Dead for 3 Years, Donated $650,000: Who is Effective Altruism Really Benefiting?
A former FTX employee, Ross Rheingans-Yoo, was awarded $650,000 in bankruptcy court from the collapsed crypto exchange, part of a bonus promised in 2022 that included half in cash and half as a donation to an effective altruism (EA) charity. After FTX’s bankruptcy, he initially tried to direct the funds to Manifold for Charity, where he served on the board, but FTX’s estate lawyers blocked it, citing conflicts of interest. He then proposed 1DaySooner, another EA-aligned charity, but lawyers objected on a technicality—claiming the original agreement specified “the” charity, not “any” charity.
The bankruptcy judge rejected FTX’s argument, calling it wasteful litigation without legal basis, and approved the donation to 1DaySooner. FTX’s estate appealed, continuing the legal fight.
The case highlights broader issues: FTX’s estate has sued Rheingans-Yoo to recover $71.6 million in alleged fraudulent donations made through FTX Foundation, which he denies. Meanwhile, legal fees in the FTX bankruptcy have soared to nearly $1 billion, making it one of the costliest in US history—raising questions about whether prolonged litigation benefits lawyers more than creditors.
marsbit02/04 04:15
