Former Alameda co-CEO Sam Trabucco is facing a significant loss as he is set to forfeit valuable assets to the FTX estate as part of a proposed settlement filed in court. Documents recently revealed that Trabucco will be giving up two San Francisco apartments worth $8.7 million, a super yacht valued at $2.5 million, and disputed customer claims totaling $70 million related to the defunct crypto group.
The court filings regarding the settlement between the FTX estate and Trabucco highlighted that the executive had received $40 million in transfers that could have been avoided within a two-year period as part of Sam Bankman-Fried’s crypto empire. Trabucco, who was a close associate of Bankman-Fried in the blockchain industry, served as the co-CEO of Alameda and played a significant role in SBF’s hedge fund as well as being part of FTX’s top executives.
Trabucco’s departure from Alameda in August 2022 came just before Bankman-Fried’s companies filed for bankruptcy later that year. Following legal actions against Bankman-Fried and other top executives like Caroline Ellison, Gary Wang, and Nishad Singh, plea deals were made with federal prosecutors, with Bankman-Fried receiving a 25-year prison sentence and Ellison facing a two-year supervised release.
Despite being part of Alameda during a period of questionable practices, Trabucco did not sign a plea agreement or testify in court. He has managed to avoid the media spotlight throughout FTX’s troubles and now faces an uncertain future post-SBF.
As the FTX estate prepares to distribute around $16 billion to creditors, their legal team continues to pursue asset recovery by filing lawsuits against prominent figures in the crypto industry such as Binance founder Changpeng Zhao and Crypto.com. The outcome of these legal actions will have a significant impact on the future of the crypto landscape and the entities involved.
