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The former co-CEO of Sam Bankman-Fried’s crypto trading firm Alameda was a risk-loving, poker-playing gambler

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  • Bloomberg reported that Almeida’s former co-CEO used poker and blackjack strategies in crypto trading.
  • Trabucco has often and publicly disclosed how much he applies what he learned from his time at the card table to the crypto market.
  • Trabucco has not been publicly accused of wrongdoing in the wake of the FTX explosion.

Bloomberg reported that the high risk appetite at the now-defunct FTX crypto exchange may have some roots in the card game skills of the former co-CEO of his closely affiliated trading firm Alameda Research. .

According to a Bloomberg report, tweets and public comments from Sam Trabuco indicate that the former Alameda executive used poker and blackjack strategies in crypto trading. Trabuco, 30, has not been publicly accused of wrongdoing. He resigned from the company in August, handing over the role of Almeida’s CEO to Caroline Ellison.

Bloomberg reported that Trebuco often revealed how much he applies what he learned from his time at the card table to the crypto market.

In a tweet thread dated January 12, 2021, Trabuco explained how the betting strategies were implemented on Almeida’s trades. “Big is Bigger (When Betting is Better)”, he wrote. “Getting it right is a poker term that refers to the idea that when your odds are the best…you want to bet more.”

Trabuco said in the same series of posts that he may or may not be banned from three casinos for counting cards at blackjack tables.

According to the report, Trabuco said in January 2021 that Almeida had made risky bets in the company’s operations. He added that when the OKEx exchange froze withdrawals, Almeida began aggressively buying positions from people who wanted to hedge their exposure to the exchange.

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“Not only are we not sellers, we are big buyers – even if it’s risky – because we can really take risks and this trade is great from what we know – was important, and it’s something that we ‘always pursue’. to do,” he wrote in a January 13 message on Twitter,

According to his profile on LinkedIn, Trabucco earned a degree in mathematics with computer science from the Massachusetts Institute of Technology in 2015 and previously worked as a trader at Susquehanna International Group.

FTX, which was once valued at $32 billion, debuted this month following a CoinDesk report on Alameda’s balance sheet that revealed the company relied heavily on holdings of FTX’s native token, FTT. The ensuing liquidity crisis at FTX pushed the Sam Bankman-Fried-founded company into Chapter 11 bankruptcy proceedings this week.

Bankman-Fried was replaced as CEO of FTX by John Ray III, who guided Enron through a $63 billion bankruptcy process that began in 2001.

FTX may have more than a million creditors and Ray criticized its activities in FTX’s bankruptcy filing. He noted that FTX and Alameda did not have internal accounting teams, making it difficult to obtain reliable financial statements.

“Never in my career have I seen such a complete failure of corporate controls and a complete absence of reliable financial information,” Ray said in a statement as part of FTX’s bankruptcy filing.

Source: markets.businessinsider.com

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