Sam Trabucco Surrenders Over $80 Million to FTX Creditors
Former co-CEO of Alameda Research, Sam Trabucco, has agreed to return substantial assets to the creditors of the now-bankrupt crypto exchange platform FTX. According to a filing on November 3, Trabucco has agreed to transfer two apartments worth a total of $8.7 million in San Francisco, as well as a 53-foot yacht (named Soak My Deck) acquired in March 2022 for $2.5 million. Additionally, he has committed to transferring the rights to claims filed against FTX, amounting to approximately $70 million.
Sam Trabucco: A Controversial Figure
Trabucco, known for being an influential member of Sam Bankman-Fried’s inner circle, joined Caroline Ellison at the helm of Alameda Research, the trading firm co-founded by Bankman-Fried. This close association has often been seen as a sign of his involvement in the strategic and financial operations that characterized the rise of the company. He left Alameda in August 2022, just a few months before both the company and FTX filed for bankruptcy in December, marking one of the biggest collapses in cryptocurrency history.
Despite the turmoil that followed the downfall of the FTX empire, Trabucco has never publicly admitted to being involved in illicit activities or being aware of questionable practices within the company. His posts on X sometimes hinted at risky operations and aggressive strategies, without clarifying their legality or ethics.
The Avoidable Transfers by Trabucco: A Major Concern
According to court documents, Trabucco is believed to have received around $40 million in transfers that were deemed “potentially avoidable” during his two years at Alameda. This term refers to financial transfers that could be challenged or recovered as part of bankruptcy proceedings under the applicable laws on suspicious transactions. The fact that some of these sums have been accepted in restitution highlights the former executive’s effort to cooperate in the recovery process of assets lost by FTX.
Assets Returned to Fill a Financial Void
The restitution of Trabucco’s assets is part of a broader effort to repay the creditors who suffered losses due to FTX’s bankruptcy. Assessing and recovering funds scattered through various transactions and personal acquisitions by former executives have become crucial in an attempt to mitigate the losses inflicted on investors. The sale of assets such as the yacht and the San Francisco apartments could help reduce the massive liability left by the platform’s collapse.
