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