FTX Bankruptcy Liquidation Update: Former Co-CEO of Alameda, Trabucco, Sells Real Estate and Yacht to Compensate Creditors

Two years after the closure of the cryptocurrency exchange FTX and its sister institution Alameda Research, former Alameda co-CEO Sam Trabucco has reached an agreement with FTX bankruptcy creditors to sell off assets, including several apartments and a luxury yacht, to repay the debts.

Former Alameda Co-CEO Sam Trabucco, Once a Core Member of SBF, Surrenders Lavish Assets

According to Bloomberg, Trabucco, who was once a core member of FTX founder SBF, served as the CEO of Alameda alongside Caroline Ellison since August 2021. Ellison has been sentenced to two years in prison and is currently serving her term. On the other hand, SBF has been sentenced to 25 years in prison for his involvement in the FTX fraud case. Trabucco left Alameda in August 2022, and FTX officially filed for bankruptcy in November of the same year.

Yacht and San Francisco Properties to be Transferred to Creditors, Approval Hearing Scheduled for December

According to court documents cited, Trabucco has agreed to surrender his yacht purchased in March 2022 for $2.51 million, as well as relinquish two apartments in San Francisco purchased in 2021 for a total of $8.7 million. Furthermore, he has agreed to waive his claim of around $70 million against FTX and transfer the related rights to the creditors. The agreement was signed on 11/3, and a hearing is expected to take place on 12/12 for formal approval.

Once Known for High-Risk Trades, Trabucco Now Absent from the Community

Prior to FTX's bankruptcy, Trabucco often shared high-risk trading strategies on Twitter, including trend trading and speculative investments labeled as "bold bets," which were considered one of the reasons for Alameda's collapse due to their "overly aggressive" nature. However, following FTX's closure, Trabucco disappeared from social platforms and has yet to publicly acknowledge any wrongdoing or face criminal charges.

FTX Bankruptcy Case Progressing Steadily, Creditors Expected to Receive Compensation Gradually

As early as October, FTX CEO and restructuring head John J. Ray III stated, "Returning 100% of the bankruptcy claim amount and interest to non-government creditors and distributing it to creditors in over 200 jurisdictions worldwide." With several executives in prison, U.S. authorities and the FTX bankruptcy team, institutions actively seeking funds, and Trabucco's asset transfers, creditors are poised to receive compensation gradually.

Bankruptcy Court Rules! FTX to Return 119% of Claim Amount within 60 Days