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

Ex-Alameda Research co-CEO Sam Trabucco will surrender ownership of condos and a yacht and relinquish $70M in claims he filed against FTX.
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Alameda’s Sam Trabucco To Forfeit $70M In FTX Settlement

Highlights

  • Former Alameda co-CEO Sam Trabucco gives up luxury assets and his $70 million claim against FTX in a settlement.
  • FTX recovers millions as Trabucco surrenders yacht, apartments and relinquishes his claims.
  • Trabucco's settlement highlights the close connection between FTX and Alameda before their collapse.

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.

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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.

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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 expertise in macroeconomics, technology, and the crypto and blockchain sectors. She began her career in 2005 as a lifestyle writer for *Cosmopolitan* before transitioning to business and economic reporting for renowned outlets like *Forbes* and *Bloomberg*. Inspired by thought leaders like Don and Alex Tapscott and Laura Shin, Teuta embraced blockchain's potential, viewing cryptocurrency as one of humanity's most transformative innovations. Since 2014, she has specialized in fintech, focusing on crypto, blockchain, NFTs, and Web3. Known for her strong collaboration and communication skills, Teuta also holds dual MAs in Political Science and Law.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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