Sam Trabucco Forfeits $70M Holdings as FTX Bankruptcy Recovery Accelerates

The ongoing FTX bankruptcy case has reached another milestone with Sam Trabucco, the former co-CEO of Alameda Research, agreeing to surrender approximately $70 million in assets to compensate creditors. This latest development, filed in November, underscores the systematic effort by bankruptcy trustees to recover funds from those who benefited during the company’s fraudulent operations. For Sam Trabucco, the consequences of his leadership at Alameda are becoming increasingly tangible and permanent.

The Costly Legacy of Alameda’s Co-Leadership

As co-CEO of Alameda Research, Sam Trabucco sat at the center of one of crypto’s most consequential scandals. The asset forfeiture agreement requires him to relinquish ownership of two San Francisco properties valued at $8.7 million and a 53-foot luxury yacht purchased in March 2022 for $2.5 million. Beyond these high-profile assets, Trabucco must also abandon legal claims worth approximately $70 million against the FTX estate itself—a particularly significant concession that signals his shift from potential creditor to obligated contributor to the compensation pool.

Filing documents reveal that during his tenure at Alameda, Sam Trabucco received nearly $40 million in what authorities classify as “potentially avoidable transfers.” These funds, prosecutors argue, may constitute assets recoverable under bankruptcy law if they originated from misappropriated FTX resources. Although Trabucco departed Alameda in August 2022—several months before the November collapse—his financial arrangements during his employment remain subject to legal scrutiny and potential clawback procedures.

Unraveling the Alameda-FTX Financial Nexus

Understanding Sam Trabucco’s role requires examining the labyrinthine relationship between Alameda Research and FTX. While Trabucco maintained a carefully neutral public stance regarding misconduct allegations, his social media activity suggested awareness of Alameda’s aggressive trading posture and elevated risk appetite. He stopped short of directly implicating the firm or FTX in fund mismanagement—the central focus of ongoing investigations.

The association between these two entities created a complex web of cross-financing that destabilized both organizations. Alameda operated as an in-house trading hedge fund for FTX founder Sam Bankman-Fried, blurring the line between corporate entities and enabling systematic fund transfers across company boundaries. Prosecutors have identified this arrangement as instrumental to the FTX collapse, with customer deposits flowing illicitly to Alameda for high-risk trading and personal expenditures by executives. Sam Trabucco, as a senior leader during this period, benefited substantially from this structure even as it accumulated hidden liabilities that would eventually trigger the bankruptcy.

Systematic Asset Recovery and Broader Legal Consequences

The seizure of Sam Trabucco’s properties and financial claims represents one piece of a larger asset recovery campaign targeting former FTX and Alameda executives. Bankruptcy trustees have pursued similar forfeitures against other senior officials, collectively recovering hundreds of millions of dollars for the estimated 1 million affected creditors. This represents one of the largest bankruptcy proceedings in recent history, with particular emphasis on identifying personal enrichment among top leadership.

The pattern is consistent: senior executives including Sam Trabucco accumulated wealth through inflated salaries, asset transfers, and FTX-related financial instruments while the underlying business operated on a foundation of fraud. Bankman-Fried himself faces multiple felony charges including wire fraud, conspiracy, and conspiracy to commit money laundering. The bankruptcy hearings have evolved into a comprehensive examination of how corporate governance failures in crypto enabled widespread financial devastation.

Industry Transformation and Regulatory Reckoning

The FTX collapse and its aftermath, exemplified by cases like Sam Trabucco’s asset forfeiture, have exposed critical regulatory gaps in digital finance. The case has illuminated how the absence of proper oversight mechanisms in the crypto sector allowed interconnected entities to operate with minimal transparency or accountability. Moving forward, the bankruptcy resolution will likely establish precedents for corporate governance, executive compensation, and cross-entity financing in blockchain-based businesses.

As bankruptcy hearings continue and additional asset forfeitures are processed, the FTX case serves as a cautionary blueprint for regulators worldwide. The compensation process for victims remains ongoing, with many creditors facing prolonged timelines before recovering portions of lost assets. Sam Trabucco’s relinquishment of $70 million in holdings represents financial accountability, but the deeper transformation required is systemic—reshaping how the crypto industry approaches compliance, risk management, and executive oversight.