FTX, the bankrupt crypto exchange founded by Sam Bankman-Fried, appears to have spent millions of dollars purchasing a luxurious castle in the Czech Republic through an obscure non-profit with ties to the “effective altruism” movement. The castle, called Chateau Hostavoc, was purchased with a $4.5 million grant from FTX Philantropy Inc., which was later renamed to FTX Foundation. The grant agreement stipulated that all donated funds must be spent, and the castle was intended to be used as an events venue for 60 to 100 people.
FTX had previously pledged to allocate 1% of its revenue to charitable causes in 2021, and had launched a $100 million humanitarian fund with a specific focus on “effective altruism”. This philosophy is centered around earning as much money as possible in order to give back to society. However, following FTX’s November blowup, the team behind the future fund resigned citing “fundamental questions about the legitimacy and integrity” of the operations funding FTX’s charity programs.
FTX has since been widely accused of defrauding its customers of billions of dollars by misappropriating their assets for trading at Alameda Research. The source of the funds used to purchase Chateau Hostavoc has not yet been established, and it is unclear whether it is subject to bankruptcy proceedings.