Former Alameda Co-CEO Surrenders $81M in Assets to FTX Estate in Settlement Deal

Sam Trabucco, the former co-CEO of Alameda Research, has agreed to a substantial settlement with the FTX bankruptcy estate, relinquishing assets valued at approximately $81 million. The proposed agreement, filed on November 11, 2024, includes the surrender of two San Francisco luxury apartments worth $8.7 million, a 53-foot yacht valued at $2.5 million, and the forfeiture of $70 million in claims against FTX.

The settlement comes after “constructive, arm’s length negotiations” between Trabucco and FTX debtors. According to court documents, while the FTX estate maintained they could prevail against Trabucco in litigation, they opted for settlement to avoid prolonged legal proceedings and associated costs.

Trabucco, who departed Alameda Research in August 2022 just months before the crypto empire’s collapse, received approximately $40 million in “potentially avoidable transfers” during his two-year tenure at the trading firm. Unlike other former FTX executives, including Caroline Ellison and Gary Wang, Trabucco has notably avoided criminal charges and maintained a low profile throughout the FTX saga.

The proposed settlement, which requires approval from a Delaware federal judge during a December 12 hearing, would effectively shield Trabucco from future litigation by FTX debtors. At the time of his resignation, Trabucco had mentioned purchasing a boat, ironically the same vessel he must now surrender as part of the settlement.

This development adds to FTX’s ongoing efforts to recover assets for creditors, following the recent approval of a reorganization plan that promises to return 1189% of claim values to affected customers. The estate continues to pursue asset recovery through various channels, including a newly filed $1.8 billion lawsuit against Binance and its former CEO Changpeng Zhao.