Coindesk reported that Tai Mo Shan, a subsidiary of high-frequency trading giant Jump Trading, filed a claim of up to US$264 million against the collapsed exchanges FTX and Alameda today (11) due to their failure to deliver 800 million SRM tokens in accordance with the contract.
(FTX claims are in the final process, choose to claim in the Bahamas or the United States before 8/16)
Tai Mo Shan files claim for US$264 million
Once one of Robinhood’s largest market makers, Tai Mo Shan claimed that FTX owed it $264 million for 800 million SRM tokens that failed to be delivered.
What is SRM?
It is reported that SRM was the native token of the decentralized exchange (DEX) Serum, but it collapsed after FTX went bankrupt in November 2022.
(Solana’s former leading DEX “Serum” Twitter account was suspected of being sold! All past posts were deleted, and the meme currency was also touted)
As a dazzling new star supported by SBF on Solana, the price of SRM reached a peak of more than US$12.50 per coin in September 2021, with a monthly trading volume of US$1.2 billion, and now only US$0.03 remains.
Prior to this, Jump Trading announced a major investment in Serum in 2020 and provided market making services.
800 million SRM even exceeds the current circulating supply
Coingecko data shows that 800 million SRM tokens account for 73.3% of the existing approximately 1.09 billion SRM, even exceeding the current circulating supply of 370 million.
Jump Trading said in court documents that it estimated the $264 million claim through an options model involving the market price of SRM, the redemption option price, the implied volatility of SRM and related interest rates.
FTX, Alameda lawyers: Tokens were never delivered and there is no issue of compensation
In this regard, FTX and Alameda asset lawyers argued that since Alameda collapsed before paying out the tokens and the contract was never performed, there was no issue of compensation:
There is no doubt that Alameda failed to deliver SRM tokens as stipulated in the Master Agreement, so the contract has not yet officially entered into force.
It added, "The 'Master Agreement' also states that if the contract does not take effect, Tai Mo Shan's only remedy is to cancel the 'Confirmation Letter'."
He also protested the estimated compensation amount proposed by Tai Mo Shan, arguing that it was based on a flawed options model that completely failed to support the theory, without even providing any documentation to explain in detail how the amount was arrived at.
In addition, he also expressed doubts about the legality of Tai Mo Shan’s actions and the validity of the loan contract, pointing out that the company may be involved in illegal asset transfers:
The master agreement and confirmation indicate that Tai Mo Shan can obtain 800 million SRM tokens without paying any fees, interest or collateral. More details are very suspicious.
Previously, Kanav Kariya, CEO of “Jump Crypto”, an encryption subsidiary of Jump Trading, announced his resignation last month, seemingly due to the CFTC’s investigation into the company.
(Unbearable to be investigated by the CFTC? After going through the wormhole and Terra incident, the person in charge of Jump Crypto resigned)
This article Jump Trading’s subsidiary filed a $264 million claim against FTX: I haven’t been given SRM tokens yet. It first appeared on Chain News ABMedia.
