Key facts
- Manifund founder Austin Chen announced he hired Caroline Ellison, former CEO of Alameda Research.
- Ellison pleaded guilty to fraud and conspiracy charges related to the FTX case.
- Ellison was sentenced to two years in prison and released in January.
- Ellison will develop Manifund's platform and research philanthropic strategies.
- Ellison worked under the pseudonym "Carol" during her initial period at Manifund.
- Chen stated he believes in redemption and giving Ellison a second chance.
Austin Chen, founder of Manifund, a nonprofit grantmaker associated with the effective altruism movement, announced on Friday that he has secretly hired Caroline Ellison, the former CEO of Alameda Research. Ellison, 31, who served prison time for her role in the fraud case involving Sam Bankman-Fried's FTX crypto exchange, will be responsible for developing Manifund's platform and researching effective philanthropic strategies. Chen framed the hiring as an opportunity for redemption, stating his belief in second chances and Ellison's efforts to make creditors whole and serve her time. Manifund was previously backed by FTX Future Fund, a philanthropic initiative cofounded by Chen. Chen confirmed the news via text message to Business Insider, though he did not provide documentation of Ellison's role. Ellison herself expressed gratitude for the opportunity, stating she understands why people might be hesitant to work with her but is grateful for the chance to contribute to a mission she believes in. She had been publishing her work under the pseudonym "Carol" during her work trial, which began on July 13 and transitioned to full-time employment on August 10. Chen acknowledged the "minor deception" of using a pseudonym, citing the common practice of working with famous individuals anonymously, but emphasized his commitment to transparency. Comments on Chen's post showed a divided reaction, with some supporting forgiveness and others criticizing Chen's judgment and potential harm to the reputation of effective altruism organizations.