Sam Trabucco, the former CEO of Alameda Research, has reached a tentative agreement with creditors of collapsed cryptocurrency company FTX, which includes surrendering his personal assets to pay off part of the company’s debt.
The settlement includes giving up two San Francisco apartments worth $8.7 million and a 53-foot luxury yacht purchased for $2.51 million.
He also agreed to transfer his rights to $70 million in client deposits with FTX, with these claims being cancelled once the transfer is complete.
Court filings revealed that Trabuco received $40 million in transfers during his tenure, which creditors believe are recoverable.
Although FTX’s legal team was confident in their chances of success against Trabuco, they opted for a settlement to avoid the costs of litigation and the potential for lower returns from legal action.
The settlement is still awaiting approval by a federal judge in Delaware, with a hearing scheduled for Dec. 12.
If approved, the deal will prevent any further legal action against Trabuco, ending its legal obligations related to the collapse of FTX.
Trabucco, who was named co-CEO of Alameda with Caroline Ellison, resigned from his position in August 2022, months before FTX filed for bankruptcy.
Although he has not admitted any role in financial mismanagement, the collapse of FTX has led to significant legal repercussions, including prison sentences for his former partners, such as Ellison, who was sentenced to two years, and Sam Bankman-Fried, who is serving a 25-year sentence.