The only person who remains unscathed in the FTX bankruptcy case, why did Alameda's former co-CEO Sam choose to withdraw decisively?

Original Title: 《Meet Sam Trabucco, the Alameda exec who oversaw the development of the crypto hedge fund's ultra-risky trading strategies》

Author: Morgan Chittum, Business Insider

Translation: Jordan, PANews

Everyone in the cryptocurrency industry knows that Sam Bankman-Fried (SBF), the core figure behind FTX and its affiliate Alameda Research, is about to become a prisoner. However, some may not know that within this vast "crypto empire," there is "another Sam," who is Sam Trabucco.

In August 2022, Sam Trabucco announced his resignation as co-CEO of Alameda Research just a few months before Sam Bankman-Fried (SBF) and his crypto empire FTX filed for bankruptcy, losing over $8 billion in funds.

When leaving FTX, Sam Trabucco stated on social media: "If I learned anything at Alameda, it’s undoubtedly how to make the right decisions—very beneficial for me."

At least so far, Sam Trabucco has not faced any allegations of wrongdoing, but his whereabouts remain unknown. However, what role did this "mysterious figure" play in FTX? Let's delve into the background of Sam Trabucco, an executive at Alameda Research.

A Brief Career at Alameda Research but a Wealthy One

From the founding of Alameda until October 2021, when Caroline Ellison and Sam Trabucco began serving as co-CEOs, SBF was the sole CEO of Alameda. According to a court document, Trabucco served as co-CEO of Alameda from October 2021 to August 2022, totaling less than a year.

30-year-old Sam Trabucco has not faced public allegations of any wrongdoing. He resigned from Alameda Research in August 2022, after which Caroline Ellison became the CEO of the company.

In the months leading up to his departure, Sam Trabucco began to significantly reduce his positions at Alameda. He explained this on social media, stating that it was mainly because "some of my investments could not be justified" while holding an executive position at Alameda Research. Additionally, Sam Trabucco claimed that although he would continue to serve as an advisor to Alameda Research, he would not be overly involved in the company's daily operations because he wanted to "prioritize other things."

Sam Trabucco said at the time: "What are these other things? I'm really not sure. To be precise, I've been really happy lately, spending a lot of time traveling, visiting friends and family, working for 'myself,' etc. I even bought a boat, which is cool. I need to relax, and I'm really, really happy."

According to Protos, before leaving Alameda Research, Sam Trabucco allocated up to $10 million to purchase properties, buying two luxury apartments in San Francisco and a 52-foot yacht, which he named "Soak my Deck." The Financial Times reported at the time that Sam Trabucco even spent a considerable amount hiring a freelancer on Fiverr to design a logo for the yacht.

More than a month after leaving FTX, in September 2022, Sam Trabucco wrote on social media: "Why are reporters still focused on my resignation from FTX? Haven't they seen me speeding across the beautiful waters?"

The Story of Two "Equally Aggressive" Sams Meeting

In fact, SBF and Sam Trabucco have known each other for over a decade. According to Business Insider, the two met at a math camp held at Mount Hoyoke in 2010, where SBF left a lasting first impression on Sam Trabucco—he hardly slept!

Later, they reunited at MIT. According to Sam Trabucco's LinkedIn profile, he was studying mathematics and computer science at the time. After a brief stint as a quantitative trader at Susquehanna's bond trading desk, Sam Trabucco officially joined Alameda Research in 2019 as a trader.

In October 2021, Sam Trabucco and Caroline Ellison became co-CEOs of Alameda Research. In a press release that year, FTX stated that the two would be responsible for all operational work at Alameda Research and would collaborate on executing corporate strategies and focusing on trading business management.

What many do not know is that, like SBF, Sam Trabucco is also a very aggressive cryptocurrency trader and has made several high-risk "bets" in Alameda Research's business. According to Bloomberg, Sam Trabucco has revealed in some public speeches and comments that he used strategies from "poker and blackjack" for cryptocurrency trading.

In January 2021, Sam Trabucco left a message on social media: "When the bet is better, the bigger the bet, the better." He explained his use of poker strategies for cryptocurrency trading, with one of his favorite poker terms being "Getting it in good," meaning when your odds are the best at the table… you should definitely bet big.

In the same month, Sam Trabucco executed a high-risk trade during a brief withdrawal suspension at OKEx, which sparked some speculation in the market. Many crypto investors began to sell off, while Sam Trabucco chose to buy the positions of investors looking to reduce their exposure. He candidly stated on social media:

"We (Alameda Research) are not just sellers; we are also a huge buyer (even though it’s risky), but in fact, we can take on the risk, and as far as I know, this trade is great. More importantly, we plan to do this regularly in the future."

Sam Trabucco Has Stepped Away, at Least for Now—

Although Sam Trabucco worked alongside several executives at Alameda Research and FTX who are suspected of engaging in various illegal activities, it seems he did not participate in any illegal activities, and so far, U.S. prosecutors have not disclosed any allegations of wrongdoing against him. However, in an interview in October 2021, Sam Trabucco stated: "SBF was not really involved in the daily operations of Alameda Research; for quite a long time, the company was led by Caroline Ellison and me."

However, as time moved into 2022, the situation seemed to change. With FTX's bankruptcy and the subsequent lawsuit by the U.S. Securities and Exchange Commission (SEC), Sam Trabucco changed his tune in later interviews, stating that "even after Caroline Ellison and I became co-CEOs of the company, SBF remained the ultimate decision-maker at Alameda Research."

Of course, Sam Trabucco's statement is not without merit, as court documents show that "SBF indeed guided Alameda Research's investment and operational decisions and frequently communicated with company employees, even having complete access to Alameda Research's trading records and databases."

As of now, Sam Trabucco has not commented on his related actions or the information disclosed.