Where did Fire Aid money go? New investigative report by global law firm sheds light

The “FireAid” in question refers to the charitable fundraising initiative associated with the CryptoRelief fund, which was established by Ethereum co-founder Vitalik Buterin during the devastating COVID-19 second wave in India in 2021.

The new investigative report you’re referring to was conducted by the global law firm Hogan Lovells and was commissioned by CryptoRelief itself to ensure transparency and accountability.

Here is a breakdown of where the FireAid (CryptoRelief) money went, based on that report and public disclosures.

1. The Origin of the Funds

In April 2021, Vitalik Buterin donated over $1 billion in SHIB and other meme coins to the India Covid-Crypto Relief Fund (often referred to as CryptoRelief or its initiative, FireAid). The fund was managed by a single individual, Sandeep Nailwal, co-founder of Polygon.

The immense scale of the donation and the fact that it was managed by one person led to public scrutiny and calls for transparency, prompting the independent investigation.

2. Key Findings of the Hogan Lovells Report

The law firm was given full access to all transactions, documents, and records. Their report, released in late 2023, confirmed that the funds were used appropriately. The investigation found no evidence of misuse or misappropriation of funds.

The report shed light on the money’s destination by categorizing the expenditures:

• Oxygen Supply: A massive portion was spent on addressing India’s critical oxygen shortage. This included importing oxygen concentrators, generators, and cryogenic tanks, as well as setting up oxygen plants across the country.

• Medical Equipment: Funding went towards purchasing ventilators, ECG machines, and other essential medical devices for overwhelmed hospitals.

• Vaccine Support: The fund supported vaccination efforts, including logistics, awareness campaigns, and setting up vaccination centers.

• Telemedicine and Helplines: Money was allocated to create and support telemedicine services, providing remote medical consultations to those who couldn’t access hospitals.

• Food and Welfare: The fund provided food and essential supplies to vulnerable families and communities affected by lockdowns and loss of income.

• Research and Development: A smaller portion was allocated to support research on COVID-19 variants and treatments.

• Operational Costs: The report highlighted that administrative and operational costs were kept extremely low, at less than 5% of the total fund, which is considered very efficient for a relief operation of this scale.

3. The “Where Did the Money Go?” Controversy

The controversy wasn’t about fraud but rather about speed of deployment and strategic focus. Some criticisms included:

• Pacing: As the acute emergency phase of the pandemic subsided, questions arose about why a significant portion of the funds (reportedly hundreds of millions) remained unspent.

• Future Use: Sandeep Nailwal and CryptoRelief announced intentions to use the remaining funds for broader, longer-term pandemic preparedness initiatives in India, which some original donors felt was a shift from the immediate crisis relief they had donated for.

4. Conclusion: Where the Money Went

Based on the Hogan Lovells investigation and public records:

1. The vast majority of the spent funds were directly deployed to combat the COVID-19 crisis in India through medical infrastructure, emergency supplies, and public health support.

2. The funds were not misused or stolen. The independent audit found the transactions to be legitimate and for their intended purpose.

3. A significant portion of the donation remains intact. This is due to the funds being in crypto assets that needed to be liquidated responsibly to avoid market disruption and because the initial crisis phase ended. This remaining capital is now being managed by CryptoRelief for future pandemic preparedness efforts.

In summary, the investigative report confirmed that the FireAid/CryptoRelief money was allocated properly to COVID-19 relief efforts in India, with no evidence of wrongdoing. The ongoing discussion revolves around the management and future deployment of the unspent balance.