Sam Trabucco, the former co-CEO of Alameda, is set to surrender his real estate and luxury assets to FTX as part of a proposed legal settlement.
Recently unsealed court documents dated November 11 indicate that Trabucco has agreed to relinquish ownership of two apartment complexes in San Francisco valued at $8.7 million, along with a $2.5 million superyacht and a $70 million customer claim against a now-defunct cryptocurrency entity. He stated his willingness to make these concessions.
The filings concerning the proposed deal between FTX Real Estate and Trabucco reveal that he will contribute two years of his service related to “avoidable transfers” associated with Sam Bankman-Fried’s cryptocurrency business. During this time, he reportedly received $40 million.
Trabucco, a prominent figure in the crypto world, closely collaborated with Bankman-Fried as co-CEO of Alameda and was instrumental in co-managing SBF’s hedge fund alongside Caroline Ellison, while also holding a significant position within the FTX executive team.
Trabucco abruptly departed from Bankman-Fried’s organization in August 2022, just a few months before it filed for bankruptcy in November.
Bankman-Fried faced legal consequences, being arrested and prosecuted in a Manhattan court. Key members of Alameda/FTX, including Ellison, Gary Wang, and Nishad Singh, entered into plea agreements with federal authorities for leniency in their sentences.
As a result of his involvement in what became the largest cryptocurrency fraud case in the U.S., Bankman-Fried was sentenced to 25 years in prison, while Ellison received two years of supervised release. Wang and Singh are currently appealing for non-custodial sentences as they await their terms.
Notably, Trabucco has not signed any plea deal nor has he taken the witness stand in court, despite his position at Alameda during the time illegal activities took place. Throughout FTX’s tumultuous journey, he has largely avoided media attention, leaving his future post-SBF uncertain.
Simultaneously, FTX Real Estate is preparing to reimburse around $16 billion to its creditors following the lawsuit’s resolution. Attorneys for FTX continue their quest to recover assets, having filed lawsuits against figures such as Binance’s Changpeng Zhao and the centralized exchange Crypto.com.
