Ex-Alameda CEO Caroline Ellison Secures Role at Manifund After Prison Term

Key Points

• Caroline Ellison, who led Alameda Research, has accepted a position with nonprofit organization Manifund following her January 2026 prison release
• For two months, she operated under the alias “Carol” before her true identity became public knowledge
• Austin Chen, Manifund’s co-founder, defended the employment decision, emphasizing his belief in rehabilitation
• In 2022, Ellison entered guilty pleas to charges including fraud, conspiracy, and money laundering related to FTX’s downfall
• The employment decision has sparked controversy among effective altruism advocates

Caroline Ellison, the former chief executive of Alameda Research, has secured her first public employment following her prison release, accepting a position with charitable organization Manifund.

On September 11, 2026, Austin Chen, who co-founded and leads Manifund as CEO, disclosed the appointment through a Substack publication. Chen revealed that Ellison had been contributing to the organization since July, operating under the pseudonym “Carol.”

“She actually began a trial period on July 13, which transitioned into full-time employment on Aug 10,” Chen stated. Prior to her identity being made public, she had been creating content and assisting users while using the assumed name.

Chen expressed that certain pieces of her written work resonated with him and emphasized his philosophy regarding rehabilitation. “Caroline has acknowledged her mistakes, contributed to making creditors whole, and completed her prison sentence,” he noted.

Background on the FTX Scandal

On December 18, 2022, Ellison entered guilty pleas to multiple charges: wire fraud, securities fraud, conspiracy, and money laundering. These charges stemmed from her involvement in the catastrophic failure of cryptocurrency exchange FTX, which resulted in billions in lost customer assets.

She provided assistance to federal authorities and gave testimony against Sam Bankman-Fried, FTX’s founder, during his trial in 2023. Bankman-Fried received a conviction and a 25-year prison term.

Beginning her two-year sentence in November 2024, Ellison was initially incarcerated at a Connecticut facility before transferring to a community confinement facility in 2025. After 14 months of custody, she gained her freedom on January 22, 2026.

Divided Opinions on the Employment Decision

Manifund operates as a 501(c)(3) charitable entity concentrating on artificial intelligence safety initiatives and effective altruism endeavors. Numerous former FTX leaders, among them Ellison and Bankman-Fried, were prominent advocates of the effective altruism philosophy.

The announcement hasn’t been universally accepted. Cate Hall, who previously headed the Astera Institute, offered a pointed critique 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 expressed concern about potential reputational harm to Manifund and related effective altruism entities.

Additional commenters raised doubts about whether Chen’s justifications constituted sound business rationale for employing someone with Ellison’s history.

Ellison personally responded to the negative feedback within the post. “I completely understand why people may not want to work with me,” she acknowledged. She further expressed being “deeply sorry” for her involvement in the FTX catastrophe.

Notwithstanding the opposition, Ellison stated her continued 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 remarked.

At Manifund, her responsibilities include advancing the organization’s funding platform and contributing to its charitable initiatives.

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