Caroline Ellison, the former Alameda Research CEO who cooperated with prosecutors following the collapse of FTX, has accepted a full-time position at Manifund, a nonprofit grant-making platform. Manifund cofounder Austin Chen announced the hire, stating that Ellison will focus on improving the platform’s technical infrastructure and researching how philanthropic capital can be allocated more effectively.
From Work Trial to Full-Time Role
Ellison began a work trial on July 13 and transitioned to a full-time role on August 10. For her first two months, she operated under the pseudonym “Carol.” For observers of the cryptocurrency sector, the nature of her new role is the critical detail. Ellison is not returning to a trading desk or a treasury management position. Instead, her responsibilities center on technical infrastructure, logistics, and customer support. One early project involved building a reconciliation tool that uncovered misreported transactions in the Manifund database totaling “5-6 figures.”
Manifund’s Funding Model and Ellison’s Mandate
Manifund operates as an open platform connecting charitable donors with fundraisers. The organization utilizes three primary financing mechanisms:
- Publicly disclosed proposals backed directly by donors.
- Regrantors who distribute grant budgets according to donors’ directives.
- Impact-certificate markets where donors fund winning or deserving projects.
According to the organization, Manifund has financed 486 projects, raised $17.2 million, and transferred $5.46 million through regrantors. Ellison’s remit covers the technical and operational backbone of these initiatives. She has stated she will continue to improve Manifund’s technical systems, operations, and customer service, while the selection of funded projects will remain outside her purview.
Navigating Regulatory Restrictions
This distinction is legally significant. Ellison remains subject to regulatory sanctions stemming from the FTX case. In December 2025, the SEC filed proposed final consent judgments barring her from serving as an officer or director for 10 years and imposing a conduct-based injunction for five years. Separately, in August, the CFTC imposed a five-year trading ban and a 10-year registration bar. Legal observers note that a technical and operational role at a private charity appears to fall outside the scope of these limitations.
Ellison pleaded guilty in December 2022 to fraud and conspiracy charges related to FTX. She subsequently cooperated with prosecutors and testified against Sam Bankman-Fried. She began a two-year prison sentence in November 2024 and was released in January 2026.
Organizational Ties to the FTX Future Fund
The hiring carries added sensitivity due to Manifund’s history with the FTX Future Fund. Chen acknowledged he had “a keen debt” to the fund, which backed the initial Manifold initiative that preceded Manifund, noting that most of Manifund’s concepts are based on that earlier work. Given the SEC’s allegations that Alameda Research misappropriated FTX customer funds for trading and investments, Ellison’s appointment carries weight beyond a standard personnel decision.
Transparency Concerns and Pseudonym Use
Manifund promotes transparency as a core value. Chen conceded that allowing Ellison to work under a pseudonym for several months meant the organization had “compromised on transparency.” This admission has fueled debate regarding the platform’s commitment to its stated principles.
Debate Over Redemption and Reputation
Chen framed the decision explicitly around the concept of second chances:
I believe in redemption.
— Austin Chen, Manifund cofounder
He argued that Ellison admitted wrongdoing, worked to make creditors whole, and served her prison sentence. Ellison echoed this sentiment:
I’m very grateful to Austin for giving me a second chance, and judging me on my current work performance rather than my past.
— Caroline Ellison
Not all stakeholders agree. Responding to the announcement, Cate Hall, former CEO of Astera Institute, characterized the decision as:
truly terrible judgment
— Cate Hall, former CEO of Astera Institute
This divergence of opinion underscores the significance of the hire. While Ellison is not re-entering crypto finance, her new role tests the boundaries of reputational rehabilitation after one of the largest frauds in financial history. For Manifund, the ultimate verdict will depend less on the symbolism of the hiring and more on whether donors believe the platform’s transparency, controls, and results justify the trust Chen is asking them to extend.
