- Major media companies are freezing grants donated by bankrupt FTX’s Sam Bankman-Fried.
- ProPublica, Vox Media, Intercept, and Semafor is considering returning the funds.
- Part of the funds donated has already been used by the firms on social issues such as public health, covid-19, poverty, and more.
Major media companies have recently announced the return of the grants they received from FTX founder and CEO, Sam Bankman-Fried after the US Justice Department files charges against the bankrupt cryptocurrency exchange.
Bankman-Fried was accused of fraud, and money laundering, demonstrating an incorrect financial narrative of FTX, as well as, using his customer’s money without their consent.
The non-profit organization, ProPublica announced on December 20, that they will be repaying the $1.6 million USD donated by SBF’s foundation, Building A Stronger Future. While the money was going towards public health, biosecurity, and coronavirus, the non-profit shared that they will figure out other ways of funding, instead.
The 3-year grant worth $5 million USD was suspended by ProPublica when SBF stepped down and FTX filed for bankruptcy. However, it remains undetermined where the grant money will go next.
SBF’s family foundation donated $200,000 USD to Vox Media which the company has decided to freeze and return. Vox’s spokeswoman announced that $14,000 USD out of the grant have already been used during August on issues including climate change, fighting global poverty, and other challenges of society.
Meanwhile, the news organization Intercept is still deciding if they will be returning the $500,000 USD donated to them in part of a 4 million USD grant. While the company share that returning the funds will burn a hole in its pockets, spokesman Rodrigo Brandao stated,
At this time, we are still gathering the information we need to make a principled decision in accordance with our mission and values.
Additionally, global news platform Semafor hoped to explore independent journalism via SBF’s contribution, is waiting for a final verdict from the authorities on whether they have to return the grant they accepted in May 2022.
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