Settlement Agreement Overview

Former Alameda Research co-CEO Sam Trabucco is set to surrender two San Francisco apartments worth $8.7 million and a 53-foot yacht. This agreement also includes the forfeiture of $70 million in claims he had against FTX.

Details of the Settlement

This arrangement is part of a proposed settlement between bankrupt FTX, FTX Digital Markets, and Trabucco, filed on Monday. According to the settlement document:

> "Following constructive, arm’s length negotiations, the Debtors, FTX DM and Trabucco have reached an agreement that delivers significant value for the Debtors’ and FTX DM’s stakeholders without the delay and cost of litigation."

Background Information

Sam Bankman-Fried founded both FTX and the crypto trading firm Alameda Research. The latter was co-led by Caroline Ellison, highlighting the close ties between FTX and Alameda Research. Trabucco resigned in August 2022, just months before the collapse of both companies. At the time of his resignation, he noted that he had purchased a boat, prompting Ellison to wish him enjoyment.

In June 2023, Trabucco filed claims totaling $70 million against FTX, Alameda Research, and other related entities.

The filing stated:

> "Trabucco will transfer to the Debtors all rights and interests represented in and asserted through his claims filed against the Debtors, including with respect to his customer claims totaling approximately $70 million, and all of his claims against the Debtors will be disallowed and expunged."

Bankruptcy Proceedings

A U.S. bankruptcy judge approved FTX's reorganization plan in October, enabling the distribution of funds to customers—two years after FTX's collapse. Under this plan, 98% of creditors will receive at least 118% of their claim value in cash. Previously reported by The Block, approximately 94% of creditors in the “dotcom customer entitlement claims” class voted in favor of the reorganization plan, which represents around $6.83 billion in claims by value. However, the plan has faced criticism for distributing funds in dollars instead of cryptocurrencies.