Caroline Ellison, the former CEO of Alameda Research, has officially stepped into her first public role since her release from prison, joining the nonprofit charity Manifund. Her hiring, initially conducted under the pseudonym ‘Carol’, has sparked considerable conversation in the crypto and charity sectors.
On September 11, 2026, Austin Chen, co-founder and CEO of Manifund, revealed that Ellison had been quietly contributing to the organization since July. In his announcement, Chen noted that she began her work trial on July 13, which transitioned into a full-time role on August 10. During this period, she was engaged in content creation and user support without her identity being disclosed.
Chen expressed his belief in second chances, stating, “Caroline has admitted her faults, worked to make creditors whole, and served her time in prison.” His support for Ellison’s hiring comes from an appreciation of her writing and the potential for redemption.
Ellison’s Legal Troubles
Ellison’s past is marred by her guilty plea on December 18, 2022, for charges including wire fraud, securities fraud, conspiracy, and money laundering, all linked to the infamous collapse of the FTX crypto exchange. The fallout from the collapse resulted in the loss of billions of dollars in customer funds.
In a significant turn of events, she cooperated with federal prosecutors, testifying against FTX founder Sam Bankman-Fried during his trial in 2023. Bankman-Fried was ultimately convicted and sentenced to 25 years in prison. Ellison, who began a two-year prison sentence in November 2024, was released on January 22, 2026, after serving just 14 months.
Community Response
Manifund is recognized as a 501(c)(3) charity dedicated to artificial intelligence safety and effective altruism projects. Notably, many former FTX executives, including both Ellison and Bankman-Fried, were advocates of the effective altruism movement.
The decision to hire Ellison, however, has not been universally welcomed. Cate Hall, former CEO of the Astera Institute, criticized the move, deeming it “truly terrible judgment” and warning that it could undermine the reputation of Manifund and similar organizations within the effective altruism community.
In light of the backlash, some commenters have questioned whether Chen’s rationale for hiring Ellison—centered around her alleged redemption—holds merit in a business context.
Ellison herself addressed the criticisms, acknowledging that many may not want to work with her. She expressed her remorse for her role in the FTX collapse and stated, “I completely understand why people may not want to work with me. I feel very lucky not only to have a job, but to be working somewhere that I think is doing great work.”
In her new position at Manifund, Ellison is tasked with developing its funding platform and bolstering its philanthropic initiatives. As she embarks on this new chapter, the crypto community watches closely, pondering the implications of her return to the professional landscape.
