Former Alameda CEO Spent $10,000,000+ on Luxury Properties Months Before FTX Collapse – Did He Know What Was Happening?
As the collapse of major crypto exchange FTX and sister firm Alameda Research continues to generate controversy within the cryptosphere, Sam Trabucco, Alameda’s former co-CEO, reportedly went on a shopping spree shortly before the two companies’ implosion. Among others, he bought two luxury apartments in San Francisco and a yacht for an estimated $10 million.
Just months before FTX’s bankruptcy, Trabucco decided to retire and disappear from social media, spending major cash on real estate and luxury boats, according to documents and data obtained by industry news site Protos.
The former executive purchased the two apartments, which are next door to each other, for a total of $8.7 million. Trabucco, who is a longtime friend of FTX’s former CEO Sam Bankman-Fried, paid for the real estate in cash, and closed the deal in June 2021.
In addition to the two apartments, the retiree also splashed out on another major purchase, buying a 52-foot yacht shortly before stepping down from his post in August 2022. At that time, Trabucco claimed his decision was related to the fact he had “reached a point in life where” he wished “to prioritize other things.”
Whether one of the things he wished to prioritize involved buying an expensive boat estimated to be worth more than $1 million is unclear. What is known, however, is that Trabucco named the yacht Soak my Deck, as reported by The Financial Times. The boat was initially registered with the US Coast Guard.
FTX lent as much as $10 billion worth of user funds, or more than half of its customers’ assets, to Alameda Research to fund risky bets.
Meanwhile, Trabucco’s former business partner Bankman-Fried recently suggested that he might not appear in the upcoming hearing of the U.S. House of Representatives Financial Services Committee to testify on his crypto empire’s collapse.
"Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain. I'm not sure that will happen by the 13th. But when it does, I will testify," FTX’s founder said, replying to a tweet by Congresswoman Maxine Waters, a Democrat representing California, who chairs the committee.
Despite SBF’s announcement, the committee is scheduled to convene for a hybrid meeting, entitled Investigating the Collapse of FTX, Part I, on December 13.
Maxine replied in a stern tweet that it is “imperative” SBF attends the hearing.