Who is Sam Trabucco, Mysterious Former CEO of FTX-Alameda?
Sam Trabucco stepped down as CEO at trading company Alameda Research in August.
Sam Trabucco stepped down as CEO of trading company Alameda Research in August. As he left, he said, “But if I've learned one thing in Alameda, it's how to make good decisions. This is the right decision for me,” he said. But now all eyes are on him again because the former CEO of FTX-Alameda made big decisions that led to the downfall of Alameda and FTX. Also, FTX resigned just a few months before its bankruptcy.
Who is Sam Trabucco?
Sam Bankman-Fried's cryptocurrency exchange FTX shook the entire market with its unexpected bankruptcy. First, the exchange suspended withdrawals, albeit slowly. After that, it declared bankruptcy just 10 days later. This came after a report that Alameda Research, originally owned by FTX, went bankrupt. There were signs that Alameda Research, which had $8 billion in liabilities and $14.6 billion in assets, collapsed, CoinDesk reported in October. As reported by Coinzigzag.com, Alameda Research is basically a hedge fund affiliated with FTX.
Sam Trabucco was managing this fund. He also probably held most of his illiquid altcoins during his tenure. This included a large amount of FTT, a swap token of Alameda's sister company FTX. Trabucco joined Alameda in 2019 after working for a time as a trader at the bond desk of Susquehanna International Group. His friend and boss, Bankman-Fried, appointed him to Alameda in October 2021 with the aim of removing him from FTX. Thus, he started working with Caroline Ellison as co-CEO. Trabbucco said in a statement at the time:
“SBF is not very interested in day-to-day operations in Alameda. Caroline and I have been managing responsibility there for quite some time.”
He was an old friend of Sam Bankman-Fried
Sam Trabucco with former FTX CEO Bankman-Fried in 2010, They met at a five-week math camp. He remembered that Bankman-Fried had hardly slept during their stay. After this camp, they continued their communication. The two reunited at the Massachusetts Institute of Technology (MIT), where Trabucco studied undergraduates in mathematics and computer science. As co-CEO, Trabucco helped detach Alameda from its initial structure as a market maker for low-volume cryptocurrencies.
Is Trabucco linked to the FTX collapse?
Sam Trabucco helped Alameda expand beyond the relatively low-profit business into riskier trading strategies. For example, he said, Alameda traders are starting to explore yield farming in decentralized finance (DeFi). According to Trabucco's account, the trading company was influenced by people like Elon Musk tweeting that drove up the price of meme coins. Thereupon, the firm began to receive “huge” profits by placing highly leveraged bets on assets like Dogecoin.
The whole story is not yet known. However, emerging evidence suggests that Alameda suffered a series of losses at the start of the crypto market downturn. Co-CEO Ellison did not include Trabucco in the list of people who knew about his decision to send client funds to Alameda. In August, Trabucco announced his resignation and became a consultant to the company. On November 8, when FTX agreed to sell itself to Binance, Trabucco tweeted "Lovely everyone". He then said he hopes the road ahead will be brighter.