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Former FTX Executive Accused of Fueling Charity with Discounted FTT Purchase

• A former executive of FTX allegedly earned profits for a charity by purchasing discounted FTX tokens, FTT, before they became available to the public.
• The charity in question is Polaris Ventures, which received $15 million from the FTT transfer in 2019 and sold them for millions of dollars afterwards.
• Ruairi Donnelly, the former chief of staff at FTX, has been accused of donating the tokens to Polaris Ventures, though his lawyer claims that the FTT did not belong to FTX and was intended to pay unpaid wages.

FTX Executive Accused Of Fueling a Charity

A report citing anonymous sources has accused a former executive at cryptocurrency trading platform FTX of earning profits for a charity by purchasing discounted FTX tokens (FTT) before they became available on the public market. The charity in question is Polaris Ventures, which received $15 million from an alleged FTT transfer made by Ruairi Donnelly, the former chief of staff at FTX.

Donnelly Allegedly Donated Tokens To Charity

Anonymous sources familiar with the matter told The Wall Street Journal (WSJ) that Donnelly used $562,000 of his own salary to purchase FTT at a discounted rate of $0.05 per unit — reportedly the going FTX employee discount at the time — and then donated them via grant to Polaris. According to WSJ reporter Alexander Saeedy’s report, „the foundation made millions of dollars selling the tokens after they began trading publicly at $1 in 2019 and 2020.“

Donnelly’s Lawyer Responds

Donnelly’s lawyer responded in defense that „the FTT that Mr. Donnelly directed to be donated on his behalf to Polaris was not FTX’s funds“ but rather intended as payment for unpaid wages due him from his employment at FTX. Additionally, it was noted that $30 million worth of Polar Ventures‘ funds were stuck on FTX and are now considered major creditors in its bankruptcy case.

Anonymous Sources Claim Most Of Foundation’s Wealth Came From Transfer In 2019

Anonymous sources cited by Saeedy suggest that most of Polar Ventures‘ wealth initially came from this particular FTT transfer made in 2019 while Donnelly still worked with FTX. These same sources also allege that Donnelly is currently attempting to sell bankruptcy credits for a fraction of their value.

Conclusion

This article discussed accusations surrounding a former executive at cryptocurrency trading platform FTX who allegedly earned profits for a charity by purchasing discounted tokens before they went public on markets and donating them via grant to Polaris Ventures — making it millions when sold later on during2019-2020 while he still worked with them . However , according to Donnelly’s lawyer , these tokens were intended as payment for unpaid wages due him from his employment withFTX , not taken from company funds .