Sam Trabucco Relinquishes $70M Claim, Luxury Assets in FTX Settlement

• Sam Trabucco forfeits $70M claim against FTX, luxury assets in a settlement benefiting creditors.
• The agreement recovers condos, yacht, and claims for FTX creditors, bypassing litigation costs.
• Settlement marks a key recovery step in FTX’s efforts to return funds to its affected stakeholders.

Former Alameda Research co-CEO Sam Trabucco will surrender luxury assets and relinquish a substantial $70 million claim against FTX, marking a significant recovery step for the bankrupt cryptocurrency exchange and its creditors. 

This development comes after a Monday court filing where Trabucco, who was previously involved with FTX’s affiliate firm Alameda, agreed to forfeit ownership of high-value assets, including two San Francisco condos and a yacht, as part of a structured settlement agreement.

The settlement outlines that Trabucco will hand over rights to his claims, totaling $70 million, which will subsequently be nullified, benefiting FTX and its stakeholders.

This agreement, which avoids lengthy and costly litigation, also helps streamline FTX’s ongoing efforts to claw back funds following its high-profile collapse. 

According to court documents, Trabucco’s properties, a pair of San Francisco apartments valued at $8.7 million, and a 53-foot yacht purchased in March 2022 for $2.51 million will now be transferred to FTX’s creditors.

In addition to the asset forfeiture, Trabucco’s relinquished claims represent a key development in the FTX reorganization process. The reorganization plan, approved in October by a U.S. bankruptcy judge, aims to return funds to the exchange’s creditors. 

FTX’s strategy has included various recovery actions, including lawsuits aimed at clawing back funds from multiple entities and individuals linked to previous investments and deals.

Trabucco’s involvement with FTX was extensive before his departure as Alameda’s co-CEO in August 2022, a few months before the exchange’s collapse. His exit had attracted attention, especially when he referenced the recent yacht purchase in his announcement. 

His settlement is part of a broader effort by FTX’s restructuring team to recoup funds for affected clients and resolve claims swiftly, including lawsuits against other financial entities and former FTX affiliates.