Edit January 19: FLI has made a substantive statement about this issue:
https://futureoflife.org/rejection_statement/
This seems concerning. It is claimed that the Future of Life Institute, run by MIT professor Max Tegmark, offered but did not pay out a grant to a Swedish far-right foundation. The character of this foundation and its associates is well-known in Sweden. Expo is an old and respected watchdog organization specialized on neo-nazism and related movements.
https://expo.se/2023/01/elon-musk-funded-nonprofit-run-mit-professor-offered-finance-swedish-pro-nazi-group
Thanks for sharing this. However it doesn't really answer the core question of why FLI ever thought this was okay. "We ultimately decided to reject it because of what our subsequent due diligence uncovered" — given that your brother is a writer there, did you not know beforehand that Nya Dagbladet publishes horrific, racist content? I find it hard to believe this was not known until the due diligence stage.