Caroline Ellison’s New Boss Believes in Second Chances
According to Caroline Ellison’s new employer, everyone deserves the opportunity for a second chance. After exploring Ellison’s Tumblr and Substack, he feels that others will likely see it that way too.
“I believe in redemption,” the CEO stated.
Ellison is well-known for her role at Alameda Research, a crypto-investment firm connected to her former partner, Sam Bankman-Fried, who founded the now-defunct FTX exchange. Alameda, established by Bankman-Fried, had significant ties to FTX, including a staggering $65 billion credit line, which was allegedly used to enable Bankman-Fried in making political donations.
After pleading guilty to fraud charges, Ellison was sentenced to two years behind bars but only served 11 months before her release.
Currently, she has been working with a nonprofit organization run by Austin Chen since July, officially stepping into a full-time position in August. Her role involves developing the organization’s funding platform and researching effective ways to direct philanthropic resources.
Chen leads Manifund, a nonprofit aimed at assisting charities in obtaining necessary funding.
In a recent blog entry, Chen expressed that he feels a sense of obligation towards the FTX Future Fund, which supported Manifold Markets, another venture Chen started, with Manifund being a secondary project.
He elaborated, “I believe in redemption. Caroline has faced her mistakes, endeavored to repay creditors, and has served her time. I want to provide her with the chance to make a positive impact; I hope the public will share this view.”
Interestingly, Chen noted that he was initially drawn to Ellison due to her online presence, specifically her Tumblr blog titled “Fake Charity Nerd Girl.”
Furthermore, he referenced her contributions to an effective altruism website. This movement, often referred to as “EA,” aims to produce as much evidence-based good as possible, positioning itself as a nonprofit initiative that justifies decisions through stated moral objectivity.
Chen remarked, “Issues like poverty and disease remain unresolved; countless animals suffer immensely. My team and many in the EA community strive hard to address these challenges. I don’t want to overlook someone capable like her.”
Additionally, Ellison has been writing under the alias “Carol” for the organization and shared her perspective on her new role.
“I deeply regret my past actions, and I completely comprehend why some may choose not to collaborate with me,” she commented. “However, I’m incredibly thankful to Austin for this second chance and for assessing me based on my current contributions rather than my history. I’m fortunate to be employed in an organization whose mission I stand behind.”
During Ellison’s tenure at Alameda, it was alleged that they misused $100 million from FTX customer deposits to bribe officials in China. In court, she placed the responsibility on Bankman-Fried, saying, “He directed me to commit these crimes.”
Throughout the trial, she testified that Alameda provided loans to Bankman-Fried and other FTX executives for their political donations, with Bankman-Fried himself donating around $70 million to Democratic candidates ahead of the 2022 midterm elections, making him the second-largest donor after George Soros. At the height of her career in 2021, Ellison was reportedly earning $20 million in salary and bonuses as the head of Alameda Research.
