Court documents recently filed with Delaware Bankruptcy Court in the United States show a series of financial transactions before FTX’s decline in November 2022. The above-mentioned documents indicate that most of these transactions mainly benefited individuals who held positions of influence in the financial world. Business.
It is worth noting, however, that FTX Debtors have stated that they cannot guarantee the accuracy and completeness of these data, and they disclaim all liability for potential errors or omissions.
Sam Trabucco, former co-CEO of Alameda Research, benefited from a $2.51 million transfer from the firm to American Yachting Group last March.
Notably, just a few months after the deal, Trabucco publicly admitted to owning a yacht while announcing his resignation via tweet in August 2022.
Court filing in the US Bankruptcy Court for the District of Delaware. Source: Kroll
and @alamedatrabucco. I have missed having him around in recent months, but I am so proud of all the other Alameda employees who stepped up and are more excited than ever for our future. I hope he has a great time on board! https://t.co/HqA2gz0FvL
— Caroline (@carolinecapital) August 24, 2022
The documents also suggest that Alameda Research may have been aware of wrongdoing by FTX founder Sam Bankman-Fried, but took no action. This lack of action ultimately led to the collapse of Alameda, resulting in significant losses for investors.
The revelations have brought negative attention to the cryptocurrency industry, which has long struggled to distance itself from financial misconduct.
Sam Trabucco resigns just in time
The yacht payment appeared to be a farewell gesture to Trabucco, which his then co-CEO Caroline Ellison mentioned lightly in his farewell remarks.
Trabucco, one of Alameda’s early employees, decided to resign from the now-defunct hedge fund on Aug. 24, 2022, citing an inability to continue to justify his role and a desire to prioritize other areas of his life.
Interestingly, this decision to resign came months before Alameda and FTX faced bankruptcy. Notably, Trabucco has not been implicated in any allegations against these companies or their executives.
Bitcoin (BTC) is currently trading at $25.921. Chart by TradingView.com
He has since kept a low profile, with his last social media post dated November 8, in which he expressed sympathy for those affected by the FTX debacle.
Cash Payments to FTX Executives
Additionally, court documents revealed a series of cash payments to former FTX executives including Bankman-Fried, Gary Wang, Nishad Singh, Darren Wong, and Constance Wang, all of which occurred within a year of the company’s collapse.
The payments totaled more than $3 billion and were not related to legitimate operating expenses, the documents show. Bankman-Fried received a staggering $2.2 billion, while Nishad Singh and Gary Wang received $587 million and $246 million, respectively.
Bankman-Fried is currently in custody at the Metropolitan Detention Center in New York, facing charges of witness tampering. His trial is scheduled for October 2 this year.
Featured image from Cryptoknownnomics