In a move that’s shaking the philanthropic world to its core, a notorious figure from the FTX financial implosion has been operating in the shadows of a do-gooder nonprofit — with the full blessing of its founder. Caroline Ellison, the disgraced former CEO of Alameda Research who pleaded guilty to seven counts of fraud and conspiracy, has been secretly handed a plush new role at Manifund, a grantmaker tied to the effective altruism movement. The scandalous hiring was confirmed by the charity’s founder, Austin Chen, who admitted he orchestrated the entire covert operation, even allowing Ellison to work under the cheeky pseudonym “Carol” for months.

Chen, whose organization previously received backing from the now-defunct FTX Future Fund, framed the hiring as a grand act of forgiveness in a self-published Substack manifesto. “I believe in redemption,” he declared, painting Ellison as a penitent soul who has “admitted her faults” and “served her time.” But critics are calling it a breathtaking act of ethical amnesia, questioning how someone convicted of playing a key role in one of history’s largest crypto frauds can be trusted to research “how to effectively direct philanthropic dollars.”

The revelation has sparked a firestorm within the tight-knit effective altruism community, exposing a deep rift between those preaching unconditional forgiveness and those demanding accountability for the thousands of victims who lost everything. One furious commenter, who identified themselves as a victim of the FTX collapse, seethed: “Every dollar she earns for the next 70 years should be garnished.” Meanwhile, supporters of Chen’s decision applauded the move toward “normalizing forgiveness.”

Ellison, who was released from federal custody in January after testifying against her former boss and flame, Sam Bankman-Fried, kept a conspicuously low profile until now. Chen detailed that she began a “work trial” in July before going full-time in August, and was even his guest at the exclusive Manifund festival just weeks prior. Her carefully crafted apology, published in Chen’s blog, did little to mollify those who see this not as a second chance, but as a slap in the face to justice. The question on everyone’s lips: Is this radical forgiveness, or is the elite world of tech philanthropy simply closing ranks around one of its own?