- Sam Trabucco, former co-CEO of Alameda Research, has agreed to forfeit assets valued at $70 million to FTX creditors
- This decision follows allegations of misappropriation of funds within the FTX and Alameda Research entities
- The forfeited assets are intended to aid in compensating creditors affected by the collapse of FTX
Sam Trabucco, who previously led Alameda Research alongside Caroline Ellison, has consented to surrender assets worth $70 million to the creditors of FTX. The assets, comprising a yacht and high-end real estate, are part of efforts to recover funds for those impacted by the financial turmoil surrounding FTX and its affiliates. Trabucco resigned prior to FTX’s collapse and has yet to feel the cold of an interrogation room.
Asset Forfeiture Agreement
According to a May court filing, Trabucco’s $2.5 million yacht, named Soak My Deck, was bought by Alameda Research, with Trabbuco also receiving at least $15.5 million in cash payments to Trabucco to fund his extravagant indulgences.
All told, Trabucco made at least $25 million personally from working at Alameda before resigning from the doomed FTX group of companies.
Trabucco has now agreed to relinquish Soak My Deck as well as multiple upscale apartments, collectively valued at approximately $70 million, as part of a broader initiative to recoup assets for FTX creditors following the company’s bankruptcy.
FTX and Alameda Practices Still Being Scrutinized
The forfeiture agreement emerges amid ongoing investigations into the financial practices of FTX and Alameda Research. Authorities have scrutinized the alleged misuse of customer funds and the acquisition of luxury assets by company executives. Trabucco’s decision to forfeit these assets is seen as a step toward addressing the financial discrepancies that have come to light.
The surrendered assets are expected to contribute to the pool of resources available for distribution to FTX creditors. While the total liabilities far exceed the value of the forfeited assets, this action represents a tangible effort to mitigate the losses suffered by investors and customers. The process of asset liquidation and distribution is anticipated to be complex, involving legal proceedings and coordination among various stakeholders.
