Key Takeaways:
- Asset Transfer: Ex-Alameda co-CEO Sam Trabucco will transfer two San Francisco properties and a yacht to FTX Debtors, avoiding potential litigation costs.
- Settlement Terms: Trabucco withdraws $70 million in claims against FTX, while FTX agrees to drop claims against him.
- Legal Context: The settlement aims to resolve disputes without prolonged litigation, with objections allowed until Nov. 26.
Sam Trabucco, ex-co-CEO of Alameda Research, has agreed to a settlement with FTX Debtors involving the transfer of significant assets to help recover funds following FTX’s collapse.
Trabucco will surrender two San Francisco properties, valued at $8.7 million, and a 53-foot yacht worth $2.5 million.
Sam Trabucco, one of Sam Bankman-Fried’s inner circle before the collapse the FTX and Alameda Research two years ago, has agree to hand over a slew of properties, including his yacht to creditors of the failed crypto exchange. https://t.co/vj5gslzf3N
— Bloomberg Crypto (@crypto) November 11, 2024
He will also withdraw a $70 million claim against FTX, while FTX will cease pursuing potential claims against him.
This arrangement, reached through constructive negotiations, aims to avoid costly litigation, which could delay recovery efforts and present legal uncertainties.
The settlement will be reviewed by the U.S. Bankruptcy Court for the District of Delaware, with a hearing scheduled for December 12.
Interested parties have until November 26 to file objections.
Trabucco had left Alameda Research in August 2022, just months before FTX’s collapse, and has since remained distant from legal and criminal inquiries involving the company.
Unlike other former executives, he faces no criminal charges, though questions persist regarding his knowledge of FTX’s practices.
Trabucco previously advocated for leniency for Ryan Salame, former co-CEO of FTX Digital Markets, in related proceedings.
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