Key Points
- Caroline Ellison, previously CEO of Alameda Research, has started working at nonprofit organization Manifund following her January 2026 prison release
- She operated under the alias “Carol” for two months prior to public disclosure of her identity
- Austin Chen, Manifund’s co-founder, defended the employment decision, emphasizing his philosophy on second chances
- In 2022, Ellison entered guilty pleas to charges including fraud, conspiracy, and money laundering related to FTX’s downfall
- The employment decision has sparked significant backlash from members of the effective altruism movement
Caroline Ellison, who previously led Alameda Research, has secured her first position since completing her prison sentence, now working with the nonprofit organization Manifund.
On September 11, 2026, Austin Chen, who co-founded and leads Manifund as CEO, disclosed the employment through a Substack publication. The announcement revealed that Ellison had been contributing to the organization since July, operating under the assumed name “Carol.”
“She actually began a trial work period on July 13, which transitioned into full-time employment on Aug 10,” Chen explained. Prior to her identification, she had been publishing content and assisting users using her pseudonym.
Chen expressed admiration for certain pieces of her written work and emphasized his conviction in offering opportunities for rehabilitation. “Caroline has acknowledged her mistakes, contributed to making creditors whole, and completed her prison sentence,” he stated.
Background on FTX Involvement
On December 18, 2022, Ellison entered guilty pleas to multiple charges including wire fraud, securities fraud, conspiracy, and money laundering. These criminal charges stemmed from her involvement in the FTX cryptocurrency exchange implosion, which resulted in the loss of billions in customer assets.
She provided testimony for federal authorities and appeared as a witness against Sam Bankman-Fried, FTX’s founder, during his trial in 2023. Bankman-Fried received a conviction and a 25-year prison term.
Ellison’s two-year sentence commenced in November 2024. Her incarceration began at a Connecticut facility before transitioning to a community confinement residence in 2025. On January 22, 2026, she completed her sentence after 14 months of detention.
Divided Response to Employment Decision
Manifund operates as a 501(c)(3) charitable organization concentrating on artificial intelligence safety initiatives and effective altruism programs. Numerous previous FTX leaders, Ellison and Bankman-Fried among them, were prominent advocates of the effective altruism philosophy.
The announcement received considerable pushback. Cate Hall, who formerly headed the Astera Institute, posted a critical response in the comments section. “With all due respect: You gotta be f***ing kidding me,” Hall commented. She characterized the choice as demonstrating “truly terrible judgment” and warned it might harm Manifund’s standing along with other effective altruism entities.
Additional commenters expressed skepticism about whether Chen’s stated justifications constituted legitimate business rationale for employing someone with Ellison’s criminal history.
Ellison responded to the controversy in the post itself. “I completely understand why people may not want to work with me,” she acknowledged. She also expressed being “deeply sorry” for her participation in the FTX debacle.
Notwithstanding the negative reactions, Ellison affirmed her ongoing dedication to effective altruism principles and expressed appreciation for the employment opportunity. “I feel very lucky not only to have a job, but to be working somewhere that I think is doing great work,” she commented.
Her responsibilities at Manifund include advancing the organization’s funding platform and contributing to its charitable initiatives.
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