Manifund, a charity founded by Austin Chen and focused on AI and effective altruism, has acknowledged hiring former Alameda Research chief executive Caroline Ellison, a move that has stirred controversy as FTX continues to pursue at least $1.508 million from entities tied to the group, according to Protos.
The hiring did not emerge in isolation. Protos framed it against a long-running dispute linked to funding that Chen’s organization received from the FTX Future Fund in 2022.
Grant approval traces back to FTX Future Fund
In March 2022, Chen’s organization, then called Manifold Markets, applied for $500,000 from the FTX Future Fund, the philanthropic arm of FTX, to set up Manifold For Charity, now known as Manifund, Protos reported.
The report said two prominent effective altruism figures helped run the Future Fund and therefore helped approve Chen’s application: William MacAskill and Leopold Aschenbrenner.
FTX and Alameda collapsed six months later
Six months after the grant application, FTX and Alameda Research were declaring bankruptcy, and their chief executives, Sam Bankman-Fried and Caroline Ellison, were being taken to jail, according to Protos.
The report also recapped the later outcomes of related criminal cases. Gary Wang and Nishad Singh, both associated with FTX and Alameda, ultimately received no prison sentence. Sam Bankman-Fried was sentenced to 25 years, while Ellison received a two-year sentence and was released in January 2026.
Manifund kept operating while the lawsuit expanded
During the period Ellison spent in prison, Protos said effective altruism continued despite heavy criticism, and Manifund did as well.
Citing Manifund’s own data, the report said the organization has funded nearly 500 projects and handed out almost $20 million in grants.
At the same time, Protos said one unresolved issue remained central: the $500,000 grant received from the FTX Future Fund in 2022.
FTX sued Manifold Markets in 2024 and demanded the return of $508,000. In July 2025, it added Manifold For Charity, now known as Manifund, to an amended complaint. That amended filing now seeks the return of no less than $1.508 million, according to the report.
Protos said the case has moved forward, but no solution has been agreed.
Hiring Ellison intensified scrutiny
Protos wrote that the optics are difficult for an effective altruist charity that is withholding funds from creditors while also bringing in a person tied closely to Alameda Research.
The report referred to a post by Chen on EA forums, where he argued that there is nothing inherently wrong with hiring a criminal if one believes that person has reformed.
Even so, Protos said the larger issue is Chen’s history and continuing problems with FTX. The report argued that his decision to bring Ellison into the company, despite her past at Alameda Research, his own connection to the FTX Future Fund, and the $1.508 million lawsuit, raises questions about his ability to follow effective altruist intentions.
Protos added that users on the EA forums have openly asked whether this is really maximizing positive impact.