Caroline Ellison, who previously led Alameda Research and pleaded guilty to fraud in connection with the collapse of FTX, has secretly taken a research role at the grantmaking platform Manifund, according to an announcement published by the nonprofit’s CEO, Austin Chen. Ellison, 31, is working on platform development and researching how to effectively direct philanthropic dollars, marking her first known professional role since serving a prison sentence.
The Hiring and Work Trial Details
According to Austin Chen, founder of Manifund, the hiring process began after he invited Ellison to attend Manifest 2026, a festival hosted by the nonprofit in June. Ellison subsequently began a work trial on July 13 before transitioning to a full-time role on August 10, as detailed in a Substack post published by Chen. During the initial months of her employment, Ellison published her work under the pseudonym “Carol.” Chen acknowledged the deception in his post, writing that while pseudonymous work is common for famous individuals, the arrangement compromised transparency.
Manifund originated as a charitable side project of Manifold Markets, a prediction market company cofounded by Chen. Manifold previously received backing from the FTX Future Fund, a philanthropic initiative. In a message included in Chen’s blog post, Ellison addressed her new position, stating, “I’m deeply sorry for what I did, and I completely understand why people may not want to work with me. But I’m very grateful to Austin for giving me a second chance, and judging me on my current work performance rather than my past.”
Legal Background and Sentencing Context
Ellison led Alameda Research, the crypto trading firm affiliated with Sam Bankman-Fried’s FTX exchange. In December 2022, she pleaded guilty to seven counts of fraud and conspiracy. Her guilty plea involved the misuse of FTX customer funds to cover debts and trading losses at Alameda. During the subsequent criminal proceedings, Ellison testified against Bankman-Fried.
Following her cooperation and guilty plea, Ellison was sentenced to two years in prison. She was released from federal custody in January and largely maintained a low public profile until Chen’s public disclosure regarding her employment at Manifund.
Public Reaction and Debate Over Redemption
The disclosure of Ellison’s employment drew starkly contrasting reactions within the effective altruism community and online forums. Chen framed the hiring explicitly around the concept of redemption, writing in his post, “I believe in redemption. Caroline has admitted her faults, worked to make creditors whole, and served her time in prison. I’d like to give her the opportunity to contribute back to the world; I hope that the world will concur.”
Commenters on Chen’s Substack post expressed sharply divided views. Supporters commended the decision to offer a second chance and focus on rehabilitation. Conversely, critics argued that the hire demonstrates poor judgment and risks damaging the reputation of organizations associated with the effective altruism movement. Individuals impacted by the FTX debacle also voiced anger, with one commenter arguing that future earnings should be directed toward victims of the fraud.
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