Former Alameda Co-CEO Faces Asset Foreclosure After FTX Crisis

Key Points:

• Former Alameda co-CEO Sam Trabucco has agreed to turn over assets, including a yacht and San Francisco apartments, to FTX creditors as part of a settlement.
• Trabucco’s assets, valued at millions, will be transferred along with $70 million in claims he filed against FTX, which will be cancelled.

According to Bloomberg, the former key figure at Alameda Research, Sam Trabucco, agreed to the divestment of assets to the creditors of FTX, a cryptocurrency exchange that declared bankruptcy.

Read more: Former Alameda Research CEO Sentenced to 2 Years in Prison

Former Alameda Co-CEO Sam Trabucco Divests Assets in FTX Settlement

Trabucco, the former Alameda co-CEO alongside Caroline Ellison, has been among the closest associates of Sam Bankman-Fried, founder of FTX, before its firm’s collapse two years ago.

In addition to the fine, the former Alameda co-CEO will also give up his 53-foot yacht, which was bought for 2.51 million dollars in March of 2022, several months before he left Alameda last August. Trabucco will also be surrendering two luxury apartments in San Francisco, which he purchased in 2021 for 8.7 million dollars. As part of the deal, Trabucco would also drop any claims that he filed against FTX, totalling some $70 million, which will be wiped out according to a court filing on Nov 10.

Bankman-Fried appointed Trabucco and Ellison co-CEOs of Alameda in August 2021. The former CEO was sentenced in March to 25 years in prison, while Ellison, who cooperated with investigators, received a two-year sentence. FTX and Alameda collapsed last November amid allegations that the companies misused customer funds from FTX to bolster Alameda’s balance sheet, leading both firms to file bankruptcy.

FTX Settlement with Trabucco Awaits Final Approval in December Hearing

The former Alameda co-CEO hasn’t posted to X since the collapse. That’s where he was posting tidbits about Alameda’s high-variance trading. Many of those postings appeared to reflect extreme bets on market momentum. He has not acknowledged personal wrongdoing, nor has such wrongdoing been alleged.

The transfer is the latest in a series of asset transfers that have taken place since an October court decision allowed FTX to return money to customers whose assets were stuck on the platform. The settlement with Trabucco was signed on Nov. 3 and will be up for a final approval hearing on Dec. 12.