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Alameda’s Sam Trabucco To Forfeit $70M In FTX Settlement

6 days ago
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Former Alameda Research co-CEO Sam Trabucco will surrender ownership of two San Francisco apartments worth $8.7 million and a 53-foot yacht and relinquish his $70 million in claims he filed against FTX.

These concessions represent part of a settlement between bankrupt FTX, FTX Digital Markets, and Trabucco, which was submitted on Monday. “Following constructive, arm’s length negotiations, the Debtors, FTX DM, and Trabucco have reached an agreement that delivers significant value for the Debtors’ and FTX DM’s stakeholders without the delay and cost of litigation,” the settlement document said.

Alameda’s co-CEO $70M Claim Against FTX Dismissed

Sam Trabucco, previously close to Sam Bankman-Fried, has agreed to turn over assets, including his yacht, to FTX creditors. Trabucco, who served as co-CEO of Alameda, bought the 53-foot yacht for $2.51 million in March, just months before leaving the Bankman-Fried-led hedge fund. Trabucco will also forfeit two San Francisco apartments he purchased in 2021 for a combined $8.7 million, according to the court filing.

 

Trabucco has also agreed to assign rights to about $70 million in claims he filed against FTX, which will then be nullified. FTX and Alameda Research, both founded by Sam Bankman-Fried, were co-led at the company by Trabucco and Caroline Ellison.

The firm’s tight ties to FTX came into sharp focus after FTX’s blowup. Trabucco had stepped down as co-CEO this past August, just months before FTX and Alameda blew up. “Just bought a boat,” he’d said when announcing his resignation.

FTX’s Complex Web: Another Piece of the Puzzle

In June 2023, Trabucco filed $70 million in claims against FTX, Alameda Research, and related entities.

According to Monday’s settlement, Trabucco will transfer all rights to his claims, totaling $70 million, to the debtors. His claims will also be disallowed and expunged.

In October, an US bankruptcy judge approved FTX’s reorganization plan, allowing clients to recover funds almost two years post-collapse. This plan enables 98% of creditors to regain 118% of their claim value in cash. However, some creditors voiced concerns about receiving cash instead of cryptocurrency.

FTX has since filed several bankruptcy lawsuits to claw back cash for its creditors. Recently, it sued Binance and its former CEO Changpeng Zhao for fraud and market manipulation, contending that a 2021 share buyback deal between the companies had been fraudulent and furthered FTX’s distressed financial situation.

FTX Estate also sued other investors, including Anthony Scaramucci’s SkyBridge Capital, to claw back investments it said were ill-advised. The efforts are part of FTX’s plan to maximize creditor recoveries through litigation, not lengthy and costly trials.

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Teuta Franjkovic

Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries.

Starting her career in 2005 as a lifestyle writer for Cosmopolitan, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg.

Influenced by figures like Don and Alex Tapscott and Laura Shin, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions.

Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/alamedas-sam-trabucco-to-forfeit-70m-in-ftx-settlement/