FTX, FTX Digital Markets and former Alameda Research co-CEO Sam Trabucco have reached a settlement settlement in the United States Bankruptcy Court for the District of Delaware. Trabucco has maintained a low profile since leaving FTX simply months earlier than its collapse.
Agreeing to save lots of money and time
In a movement that will likely be heard on Dec. 12, the events agreed that Trabucco will switch the titles to 2 apartments in San Francisco value $8.7 million and his 53-foot yacht value $2.5 million to FTX Debtors. In addition, he’ll drop claims towards FTX value $70 million and FTX will launch him from any claims it had as effectively.
These choices come after “constructive, arm’s length negotiations.” If compelled into litigation, Trabucco would have defenses and claims that might result in prolonged and dear proceedings. The movement states:
“The proposed settlement likely would generate more value to the Debtors’ estates on a risk-adjusted basis than the Debtors could recover if they were to initiate an adversary proceeding against Trabucco and obtain a favorable judgment against him.”
Objections to the proposed settlement will be filed via Nov. 26.
FTX settlement movement. Source: Court Listener
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A well-timed departure
Trabucco resigned from his position at Alameda Research in August 2022. He was employed as a dealer and assumed the co-CEO function in August 2021.
“Alameda is an awesome place — the problems we solve here remain the most interesting I am aware of, and the team remains the most impressive I’ve ever known,” he wrote in a tweet asserting his departure.
Source: FTX Historian
FTX collapsed three months after Trabucco’s departure. He was not heard from through the prison proceedings towards the FTX higher administration, and United States authorities didn’t file prices towards him. There was hypothesis about Trabucco’s information of or participation in the wrongdoing at FTX.
Trabucco wrote a letter to the court asking for leniency in the sentencing of former FTX Digital Markets co-CEO Ryan Salame in May.
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