Effective Ventures to Sell Historic Wytham Abbey
Effective Ventures has made the decision to sell the historic building of Wytham Abbey, also known as the «Oxford Castle of Effective Altruism,» in order to repay part of the debts owed to FTX. The castle, purchased by the fund in April 2022 with funds from Open Philanthropy, including the FTX Foundation, has become a subject of dispute following the bankruptcy of the FTX cryptocurrency exchange.
Historic Monument Auctioned Off
Wytham Abbey, a Grade I historic monument in the UK, is one of the oldest and most significant mansions in England with a history spanning over 500 years. The mansion has seen esteemed guests such as Queen Elizabeth I, Oliver Cromwell, and Queen Victoria. In recent years, the building has been utilized for hosting summits and discussions on topics like artificial intelligence by Effective Ventures.
Controversy Surrounding Sale
The purchase of Wytham Abbey was met with criticism, especially from those who questioned the use of charitable funds for acquiring such a luxurious property. The controversies heightened after the FTX exchange went bankrupt, leading to allegations of financial connections between the fund and former FTX CEO Sam Bankman-Fried, who was convicted of fraud and sentenced to 25 years in prison.
Debts Repaid Through Sale
In response to the backlash, Effective Ventures has opted to repay FTX Foundation by selling Wytham Abbey and reimbursing the funds lost by FTX investors due to the collapse of the exchange. The sale of the historic property will enable the fund to settle a portion of the debts linked to the bankruptcy of FTX.
Compensation Plan for Creditors
Prior to this decision, the temporary administration of FTX had put forth a plan to compensate creditors, with the possibility of up to 118% of their initial investments being returned to 98% of them. The sale of Wytham Abbey marks a significant step in rectifying the financial turmoil brought about by the bankruptcy of the cryptocurrency exchange.
