Former Alameda Research CEO Sam Trabucco transferred two apartments and a 53-meter yacht he owned in San Francisco to FTX. It will also drop its $70 million claim against FTX.
Details of the Agreement
The agreement between FTX, FTX Digital Markets and Trabucco represents significant value to the creditors of the bankrupt FTX. The agreement document states that as a result of constructive negotiations between the parties, a solution was achieved without causing delays and costs of the court process.
In addition to the 53-meter yacht he bought for 2.51 million dollars in March, Trabucco will transfer the ownership of the two apartments he bought for a total of 8.7 million dollars in 2021 to FTX creditors. It will also drop its nearly $70 million claims against FTX.
As a result of constructive negotiations, this agreement provides significant value to the stakeholders of bankrupt FTX and FTX DM.
FTX and crypto trading firm Alameda Research was founded by former FTX CEO Sam Bankman-Fried. Alameda’s tight ties to FTX became even more evident following the bankruptcy of FTX and Alameda. Trabucco left the company just a few months before the collapse of FTX and Alameda.
FTX’s Legal Steps
FTX’s bankruptcy plan calls for the return of funds to customers almost two years after the company collapsed. Under this agreement, 98 percent of creditors expect to receive at least 118 percent of their claims back in cash.
Some critics stated that it was inappropriate for FTX to distribute funds in dollars rather than cryptocurrencies. However, the company’s efforts to maximize creditor repayments through litigation continue during the rescue process.
FTX’s legal strategy aims to provide a quick solution to its creditors by avoiding long and costly judicial processes. In this process, Sam Trabucco’s role in the agreement is considered an important step.
Creditors and investors are closely following the developments in FTX’s bankruptcy process. The assets transferred by Trabucco in the agreement will contribute to increasing the repayments to FTX’s creditors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
