FTX, FTX Digital Markets and former Alameda Research co-CEO Sam Trabucco have reached a settlement agreement in the United States Bankruptcy Court for the District of Delaware. Trabucco has maintained a low profile since leaving FTX just months before its collapse.
Agreeing to save time and money
In a motion that will be heard on Dec. 12, the parties agreed that Trabucco will transfer the titles to two apartments in San Francisco worth $8.7 million and his 53-foot yacht worth $2.5 million to FTX Debtors. In addition, he will drop claims against FTX worth $70 million and FTX will release him from any claims it had as well.
These decisions come after “constructive, arm’s length negotiations.” If forced into litigation, Trabucco would have defenses and claims that would lead to lengthy and costly proceedings. The motion 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 can be filed through Nov. 26.
FTX settlement motion. Source: Court Listener
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A well-timed departure
Trabucco resigned from his position at Alameda Research in August 2022. He was hired as a trader and assumed the co-CEO role 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 announcing his departure.
Source: FTX Historian
FTX collapsed three months after Trabucco’s departure. He was not heard from during the criminal proceedings against the FTX upper management, and United States authorities did not file charges against him. There was speculation about Trabucco’s knowledge 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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