The Founder Who Secretly Employed Caroline Ellison Says It Got here All the way down to 1 Perception

The former Alameda Research CEO served 14 months in prison for her role in the multibillion-dollar FTX crypto fraud. Now she’s working full time at a nonprofit—and no longer using a pseudonym.

Caroline Ellison. Photo: Getty

Caroline Ellison, the former Alameda Research chief executive officer who went to prison in 2024 for her role in the multibillion-dollar fraud that brought down crypto giant FTX, has returned to work, this time at a nonprofit that directs money to charitable projects.

Ellison is now a full-time employee of Manifund, a grantmaking platform co-founded by CEO Austin Chen. On Friday, Chen said Ellison began a trial period with the organization July 13 and joined full time August 10. For nearly two months, however, her work appeared publicly under the name “Carol,” keeping her identity hidden until Chen announced the hiring.

Chen apologized for our minor deception in using

Chen apologized for “our minor deception in using a pseudonym over the last couple months” and defended his decision to bring Ellison on board despite her involvement in the FTX scandal. “I believe in redemption,” he said in a statement. “Caroline has admitted her faults, worked to make creditors whole, and served her time in prison. I’d like to give her the opportunity to contribute back to the world; I hope that the world will concur.”

Ellison’s role includes developing Manifund’s platform and researching “how to effectively direct philanthropic dollars,” Chen said.

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Manifund grew out of Manifold Markets, a prediction-market company also co-founded by Chen. Manifold previously received funding from the FTX Future Fund, the failed crypto exchange’s philanthropic arm.

Ellison ran Alameda Research, the crypto trading firm

Ellison ran Alameda Research, the crypto trading firm founded in 2017 by FTX founder Sam Bankman-Fried.

FTX collapsed in November 2022 after questions about Alameda’s finances triggered a rush of customer withdrawals and exposed a multibillion-dollar shortfall. The U.S. District Court for the Southern District of New York later ordered FTX to pay $8.7 billion in restitution and $4 billion in disgorgement to compensate customers and other victims.

Source: www.inc.com