Ex-Alameda Co-CEO to Surrender Yacht and Apartments to FTX Debtors
Sam Trabucco, the former co-CEO of Alameda Research and a close associate of FTX founder Sam Bankman-Fried, has reached a preliminary settlement with the creditors of the now-defunct cryptocurrency exchange.
In a proposed agreement, Trabucco agreed to relinquish several high-value assets to help repay the bankrupt firms debts.
The Settlement Deal
According to a November 11 court filing, the ex-Alameda chief executive will transfer legal ownership of two apartments he purchased in San Francisco in 2021 for $8.7 million. He will also give up a 53-foot yacht he acquired for $2.51 million in March 2022 at the height of the crypto market boom.
The 31-year-old will also transfer to the FTX debtors all rights to exchanges customer deposits under his name, valued at approximately $70 million in claims. Once transferred, these claims will be nullified. The filing indicates that he had received around $40 million in potentially avoidable transfers from claimants during his two years at the trading firm.
FTXs legal representatives expressed confidence in the strength of their claims against Trabucco, indicating they believe a lawsuit would likely succeed if pursued. The debtors maintain that they have meritorious claims and would prevail against Trabucco in an adversary proceeding, the filing stated.
However, the attorneys acknowledged that the resources required for litigation could prove costly and time-intensive. They further asserted that a successful lawsuit against him might yield less than the amount secured through this proposed settlement.
The agreement is still subject to approval by a federal judge in Delaware, who will review the terms in a hearing set for December 12.
Trabucco Could Avoid Further Action from Creditors
Sam Bankman-Fried appointed Trabucco co-CEO of Alameda Research alongside Caroline Ellison in August 2021, jointly overseeing the firms operations. In November 2022, Alameda, FTX, and related entities declared bankruptcy after discovering extensive customer fund mismanagement.
The former executive had resigned just a few months earlier, in August 2022, citing a desire to focus on personal growth. Although he has never publicly acknowledged any involvement or awareness of wrongdoing within the company, he occasionally posted on X about high-risk trades and aggressive strategies.
If approved, the latest deal would likely prevent additional legal action from FTXs creditors against Trabucco, effectively concluding his legal obligations to the exchanges bankruptcy case.
The aftermath of FTXs collapse has seen legal consequences for several of Trabuccos former colleagues. His co-CEO, Caroline Ellison, was recently sentenced to two years in prison after cooperating with prosecutors. Meanwhile, Bankman-Fried received a 25-year prison sentence.
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