Funding from FTX

Earlier this year ARC received a grant for $1.25M from the FTX Foundation. We now believe that this money morally (if not legally) belongs to FTX customers or creditors, so we intend to return $1.25M to them.

It may not be clear how to do this responsibly for some time depending on how bankruptcy proceedings evolve, and if unexpected revelations change the situation (e.g. if customers and creditors are unexpectedly made whole) then we may change our decision. We’ll post an update here when we have a more concrete picture; in the meantime we will set aside the money and not spend it.

We feel this is a particularly straightforward decision for ARC because we haven’t spent most of the money and have other supporters happy to fill our funding gap. We think the moral question is more complex for organizations that have already spent the money, especially on projects that they wouldn’t have done if not for FTX, and who have less clear prospects for fundraising.