Sam Bankman-Fried, once considered the face of the effective altruism movement, is associated with the closure of a UK-based charity funded by him.

Effective Ventures Foundation UK’s Closure

Effective Ventures Foundation UK, established in 2012 and financially supported by Sam Bankman-Fried, is preparing to shut down. Despite reporting substantial income of over £140 million in 2022 (approximately $177 million in April 2024), the charity’s recent report indicated that it would not sponsor new projects and intends to wind down, potentially by 2025.

Transition and Property Sale

As part of its closure plan, the charity plans to transition its ongoing projects into independent entities. It was also revealed that the charity would sell Wytham Abbey, a historic manor house near Oxford in the UK, where it conducted some of its effective altruism initiatives.

Understanding Effective Altruism

Effective altruism, originating in 2011 at the University of Oxford, delves into resource allocation to maximize help for people in need. It’s a blend of a research field identifying critical global issues and practical community efforts to implement effective solutions.

Bankman-Fried’s Role and Impact

Sam Bankman-Fried, once regarded as the financial pillar and a prominent figure of the effective altruism movement, contributed significantly to its growth and prominence, especially among wealthy individuals and tech leaders in Silicon Valley.

Challenges and Consequences

Effective Ventures faced challenges following FTX’s bankruptcy in November 2022, leading to the charity’s obligation to repay nearly $27 million received from the exchange. The UK Charity Commission initiated an inquiry in December 2022 to evaluate potential risks to the charity’s assets, which is still ongoing.

Closure Amidst Legal Troubles

The charity’s decision to close coincides with Bankman-Fried’s legal issues, including a 25-year prison sentence for fraud and an order to forfeit $11 billion. The charity has publicly condemned fraud and Bankman-Fried’s actions.

As Effective Ventures Foundation UK prepares to wind down, it marks a significant development in the effective altruism landscape linked with Sam Bankman-Fried’s philanthropic initiatives.