Sam Trabucco, the former Alameda Research co-CEO, will forfeit a 53-foot yacht and forgo $70 million worth of claims in a proposed settlement with the FTX bankruptcy estate.
The turnover will also include two San Francisco, California, apartments worth $8.7 million.
“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 states.
Jurors convicted disgraced former FTX CEO Sam Bankman-Fried of seven counts of fraud and conspiracy last November. Outside of the courthouse in Manhattan, U.S. Attorney Damian Williams said the government has “no patience” for fraud and corruption.
Bankman-Fried founded digital currency exchange FTX and Alameda Research, which is the crypto trading sister company of FTX. Caroline Ellison led Alameda Research with Trabucco.Trabucco resigned in August 2022, right before the collapse of FTX and Alameda.
The settlement stated, “Trabucco will transfer to the Debtors all rights and interests represented in and asserted through his claims filed against the Debtors, including with respect to his customer claims totaling approximately $70 million, and all of his claims against the Debtors will be disallowed and expunged.”
A bankruptcy judge approved FTX’s reorganization plan in October, which would allow 98 percent of its creditors to receive roughly 118 percent of their claim value in cash.
A report detailed how Ellison may not face jail time for her role in the collapse of FTX, as she played a pivotal role in the criminal case against Bankman-Fried, her former boyfriend.
“Because of the closeness of her relationship to Sam, she was able to provide a personal portrait of Bankman-Fried, an elusive character to be sure, that was probably unique in the government’s case,” former Assistant U.S. Attorney Kevin J. O’Brien, who specializes in white-collar criminal defense in New York, said.
Sean Moran is a policy reporter for Breitbart News. Follow him on X @SeanMoran3.
