FTX Foundation

FTX Foundation

FTX Foundation was established in 2021 by Sam Bankman-Fried, then-CEO of the FTX cryptocurrency exchange. The foundation's wealth originated from FTX's trading fees and proprietary trading profits, with Bankman-Fried and his team at Alameda Research directing philanthropic strategy. Its public emphasis was on 'effective altruism' principles, prioritizing high-impact causes. The foundation's strategy concentrated on three areas: pandemic prevention, climate change mitigation, and biosecurity. It made grants to organizations such as the Center for Humane Technology, the Good Food Institute, and a $50 million commitment to the Breakthrough Energy Ventures climate fund. Grants were often structured as large, upfront sums to quickly address identified risks, with portfolio companies including think tanks, research institutions, and advocacy groups. The foundation operated globally, with offices listed in Madrid, Bentonville, New York, Cambridge, Chicago, San Mateo, and Woburn. At its peak, the foundation had an estimated $200 million to $300 million in committed grants, per public reports in 2022. The team was small, likely fewer than 20 professionals at the time, with several FTX employees doubling as foundation staff. No separate philanthropic vehicles, such as a donor-advised fund or endowment, were publicly disclosed. In November 2022, the FTX exchange collapsed, leading to the foundation halting operations and returning some unallocated funds to bankruptcy proceedings. The foundation's structural differentiator was its funding model: it operated entirely on FTX's revenue without an independent endowment or long-term funding commitment. This made it vulnerable to the parent company's financial health. After FTX's bankruptcy, the foundation ceased active grantmaking and its offices were vacated, representing a rare case of a corporate foundation dissolving with its corporate sponsor.