Caroline Ellison has stepped out of the shadows after serving her prison sentence for her role in the collapse of the FTX cryptocurrency empire. Austin Chen, the founder of the grantmaking nonprofit Manifund, revealed on Friday that he secretly hired the former Alameda Research CEO to help develop his organization’s platform and refine how philanthropic funds are distributed. The move marks a surprising return to professional life for Ellison, who pleaded guilty to multiple counts of fraud and conspiracy before testifying against Sam Bankman-Fried.
Chen described the hire as an act of faith in redemption, noting that Ellison had admitted her mistakes and fulfilled her legal obligations. To ease her transition back into the workforce, Chen explained that Ellison spent several weeks operating under the pseudonym Carol during a work trial that began in mid-July. While acknowledging that using a fake name compromised transparency, Chen defended the choice as a necessary measure given Ellison’s notoriety.
In a statement shared through Chen’s blog, Ellison expressed deep remorse for her previous actions and gratitude for being judged on her current performance rather than her history. She acknowledged that many would be reluctant to work with her but stated she felt fortunate to join an organization with a mission she believes in. This alignment is particularly notable given Manifund’s ties to the effective altruism movement and its prior backing from the FTX Future Fund.
The announcement has sparked a polarized reaction among observers and victims of the crypto crash. Some supporters praised Chen for normalizing forgiveness and providing a path toward restitution, while critics argued that hiring someone involved in such massive financial fraud shows poor judgment and risks damaging the reputation of other charitable organizations. Among those most vocal were former FTX customers, some of whom suggested that any income earned by Ellison should be garnished indefinitely to compensate those who lost their savings.