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Alameda’s Trabucco forfeits Yacht, $70m in claims to FTX estate

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4 months ago

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Former Alameda co-CEO Sam Trabucco will forfeit real estate and luxury assets to the FTX, according to a proposed settlement filed in court.

Documents disclosed on Nov. 11 revealed that the elusive Trabucco was poised to forgo two San Francisco apartments worth $8.7 million, a super yacht valued at $2.5 million, and disputed customer claims of $70 million to the defunct crypto group. 

Court filings regarding the proposed agreement between the FTX estate and Alameda’ Trabucco noted that the executive received $40 million in “potentially avoidable transfers” as part of Sam Bankman-Fried’s crypto empire within two years.

Trabucco was one of Bankman-Fried’s closest comrades in his blockchain enterprise. As co-CEO of Alameda, he led SBF’s hedge fund alongside Caroline Ellison and was part of FTX’s top execs.

Alameda’s joint boss mysteriously left the company in August 2022, months before Bankman-Fried’s firms filed for bankruptcy in November.

SBF was arrested and tried in a Manhattan court. Alameda/FTX tops shots like Ellison, Gary Wang, and Nishad Singh signed plea deals with federal prosecutors in exchange for judicial leniency.

Bankman-Fried was sentenced to 25 years in prison, while Ellison received a two-year supervised release term for her role in America’s largest crypto fraud. Wang and Singh appealed for no jail time as the pair await sentencing.

Trabucco never reportedly signed a plea agreement or appeared to testify in court despite being employed at Alameda during a period of asset commingling and illegal practices. The one-time Alameda CEO has ducked the media spotlight throughout FTX’s saga, and now seemed bound for an unknown future post-SBF.

The FTX estate prepared to disburse about $16 billion to creditors following concluded court cases. FTX lawyers continued to pursue asset recovery, launching lawsuits against Binance founder Changpeng Zhao and centralized exchange Crypto.com.





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Alameda Research

Ex-Alameda exec Trabucco gives up yacht, apartments in FTX settlement

Published

4 months ago

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November 11, 2024

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FTX, FTX Digital Markets and former Alameda Research co-CEO Sam Trabucco have reached a settlement agreement in the United States Bankruptcy Court for the District of Delaware. Trabucco has maintained a low profile since leaving FTX just months before its collapse.

Agreeing to save time and money

In a motion that will be heard on Dec. 12, the parties agreed that Trabucco will transfer the titles to two apartments in San Francisco worth $8.7 million and his 53-foot yacht worth $2.5 million to FTX Debtors. In addition, he will drop claims against FTX worth $70 million and FTX will release him from any claims it had as well.

These decisions come after “constructive, arm’s length negotiations.” If forced into litigation, Trabucco would have defenses and claims that would lead to lengthy and costly proceedings. The motion states:

“The proposed settlement likely would generate more value to the Debtors’ estates on a risk-adjusted basis than the Debtors could recover if they were to initiate an adversary proceeding against Trabucco and obtain a favorable judgment against him.”

Objections to the proposed settlement can be filed through Nov. 26.

FTX settlement motion. Source: Court Listener

Related: 15 crypto leaders make the cut for Forbes 30 Under 30

A well-timed departure

Trabucco resigned from his position at Alameda Research in August 2022. He was hired as a trader and assumed the co-CEO role in August 2021.

“Alameda is an awesome place — the problems we solve here remain the most interesting I am aware of, and the team remains the most impressive I’ve ever known,” he wrote in a tweet announcing his departure.

Source: FTX Historian

FTX collapsed three months after Trabucco’s departure. He was not heard from during the criminal proceedings against the FTX upper management, and United States authorities did not file charges against him. There was speculation about Trabucco’s knowledge of or participation in the wrongdoing at FTX.

Trabucco wrote a letter to the court asking for leniency in the sentencing of former FTX Digital Markets co-CEO Ryan Salame in May.

Magazine: Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame