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Former co-CEO of Alameda Analysis
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One of many agency’s first hires, who oversaw the event of ever-riskier buying and selling methods
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Retired in early 2022
When Sam Trabucco stepped down as co-CEO of buying and selling agency Alameda Analysis in August, he tweeted, “But when I’ve discovered something at Alameda, it is the best way to make good selections – and that is the correct one for me.”
In hindsight, it looks as if impeccable timing for Trabucco to give up a high-stress job to spend time on his newly bought boat – mere months earlier than the corporate would go underneath water.
See additionally: Who’s Who within the FTX Internal Circle
It solely took 10 days for Sam Bankman-Fried’s crypto empire to go from processing withdrawals, albeit slowly, to declaring chapter. This adopted a CoinDesk report in October displaying that, for all intents and functions, Alameda Analysis, which had $8 billion of liabilities and $14.6 billion in belongings, was bancrupt.
The hedge fund Trabucco ran doubtless got here to personal a lot of its illiquid altcoins throughout his tenure. This consists of the inexplicably great amount of FTT, the trade token for Alameda’s sister firm, FTX.
Trabucco joined Alameda as a dealer in 2019 after a stint as a quant dealer on Susquehanna Worldwide Group’s bond desk. He was appointed co-CEO in October 2021 with Caroline Ellison, after his friend-cum-boss Bankman-Fried resigned in an try and distance the SBF-owned buying and selling agency from the SBF-controlled buying and selling platform.
“He’s not actually concerned in day-to-day operations in Alameda. Caroline and I’ve been main the cost there for fairly a while,” Trabucco informed CoinDesk on the time.
Trabucco met Bankman-Fried throughout a 5 week math camp at Mount Holyoke School in 2010, in line with Insider. He recalled that Bankman-Fried barely slept throughout their keep. The 2 reunited on the Massachusetts Institute of Know-how, the place Trabucco obtained his bachelor’s levels in math and laptop science.
As co-CEO, Trabucco helped oversee Alameda’s growth past its preliminary market-neutral, however comparatively low-profit enterprise as a market maker for low-volume cryptocurrencies into riskier buying and selling methods, in line with a Twitter thread detailing that shift. As an example, he stated Alameda merchants started exploring yield farming in decentralized finance (DeFi).
Finally, in line with Trabucco’s account, the buying and selling agency started taking in “huge” profits inserting extremely leveraged bets on belongings like dogecoin after noticing its worth went up each time Elon Musk tweeted in regards to the meme coin.
Though the complete story isn’t but recognized, rising proof suggests Alameda suffered a collection of losses through the starting of the crypto market downturn. Ellison didn’t embrace Trabucco amongst an inventory of named individuals who knew in regards to the determination to ship buyer funds to Alameda, as reported by the Wall Avenue Journal.
In August, Trabucco introduced his resignation and have become an adviser of the corporate. On Nov. 8, when FTX agreed to promote itself to Binance, Trabucco tweeted, “A lot like to everybody,” and that he “hope[d] the street forward is brighter.”
Trabucco didn’t return a request for remark for this text.
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