501c3 Charity Manifund Hires Former Alameda Research CEO Caroline Ellison
Austin Chen, co-founder of the 501c3 charity Manifund, announced that former Alameda Research CEO Caroline Ellison has joined the organization to develop a grant platform and research effective charitable funding deployment.
Chen expressed belief in redemption: Ellison has acknowledged her mistakes, assisted in compensating creditors, and has served time, hoping to have the opportunity to give back to society. Ellison began her probationary work on July 13 and became a permanent employee on August 10; for the past two months, she has published research and served users under the alias "Carol." She stated that she deeply regrets the actions of Alameda and FTX, understands the reluctance of others to cooperate, and appreciates being judged based on her current performance rather than her past.
In 2023, Ellison pleaded guilty to wire fraud, conspiracy, and other charges related to the FTX collapse, and appeared as a prosecution witness at Sam Bankman-Fried's trial in October 2023. She was sentenced to two years in prison in September 2024 and ordered to forfeit approximately $11 billion; she entered a federal prison in Connecticut in November 2024, transitioned to community supervision in October 2025, and was released on January 22, 2026, having served about 14 months. Bankruptcy estate representatives stated that her cooperation helped recover hundreds of millions in assets; she agreed to relinquish the vast majority of her remaining assets not seized by the government or used for legal fees. The CFTC also agreed to impose a five-year trading ban and a ten-year registration ban on her; additionally, she faces a ten-year restriction from serving as an executive in public companies or cryptocurrency exchanges.
Manifund, officially known as Manifold for Charity Inc., helps raise funds for effective altruism and AI safety projects, providing financial custodianship, investing 501c3 funds in aligned for-profit companies, and regranting. The organization was founded by Chen in 2022 during his time at the prediction market company Manifold, and separated from Manifold in April 2024, with no shared employees. Historically, it has received donations, including from the FTX Future Fund, and has faced controversies regarding its funding sources. Ellison previously participated in a $10 million Series B round for Anthropic in 2022, but the related equity was seized and sold by the U.S. government.
Market mechanisms indicate a repricing of reputation and compliance labor, rather than token transactions. The buyers are charitable platforms needing financial and system management personnel, willing to bear the costs of public opinion; the sellers are former trading executives who have served their sentences and are barred from exchanges and public company executive positions. The beneficiaries are Manifund's products and regranting capacity; the pressured parties are donors and beneficiaries who still view the FTX label as a signal of non-employability. Funds flow from donor accounts to platform operations, with most of Ellison's personal assets already entering creditor and forfeiture channels.
Additional structure: In June 2026, she was seen boarding a bus to an effective altruism event in Berkeley. The charitable position does not automatically lift her bans on serving in public companies and cryptocurrency exchanges.
Source: Public Information
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Ellison's career arc involves entering the crypto trading room from the effective altruism circle, then trading her testimony for a sentence reduction, and returning to the same circle's grant infrastructure. Alameda did not give her equity, and FTX only provided about 0.5% of shares, but she signed off on the actual switches of client funds and balance sheets. Pleading guilty, testifying, relinquishing assets, and serving 14 months form a standardized path of "cooperation for return." Manifund places her in the grant system rather than trading, finding a role within the gaps of her ten-year executive ban.
The capital path has two layers. One layer involves FTX bankruptcy and forfeiture: bonuses, Anthropic equity, and remaining assets are reclaimed by creditors and the government. The other layer is EA dollars: Manifund attracts donations with transparent, rapid grants, employing people who understand cash flow and system management. Chen explains the hiring with the phrase "the candle burns until midnight but still lacks a pair of hands," effectively writing talent shortages into the moral balance sheet. The Future Fund's old debts remain in the organization's history, and the new employee's name will reignite old funding sources.
Comparisons can be drawn to Enron and Theranos, where some financial and operational middle management transitioned to nonprofit or compliance roles: the market allows for a comeback without touching the original license, but does not permit an immediate return to the same leveraged positions. The industry phase involves the return of individuals from crypto scandals after serving their sentences, alongside the need for people who can manage funds in AI safety fundraising. Manifund, with its prediction market background, overlaps with the skill set of former trading executives in "allocating uncertain funds," which is more substantial than narrative redemption.
Structural judgments belong to labor reallocation after regulatory changes. The mechanism is: exchange and public company seats are locked by bans, while charitable and research platforms remain open; whoever opens this door first gains access to skills deemed tainted by other institutions. Donors vote with their feet to determine whether this door is truly open.
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The ban locks the original seat but does not lock all the books.
Redemption is the employer's risk preference, not an appendix of the court.
Those who can distribute money will be the first to be sought by the charity sector after serving their sentences.