A subsidiary of Jump Trading filed a $264 million claim against FTX: the token SRM has not yet been given

This site (120BtC.coM): Coindesk reported that Tai Mo Shan, a subsidiary of high-frequency trading giant Jump Trading, due to the failure of the collapsed exchanges FTX and Alameda to deliver 800 million SRM tokens in accordance with the contract, today ( 11) filed a claim of up to US$264 million against it.

Tai Mo Shan files a claim of US$264 million

As one of Robinhood’s largest market makers, Tai Mo Shan claimed that FTX owed it US$264 million, involving 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.

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 pointed out in court documents that it estimated the compensation amount of US$264 million through an option model involving the market price of SRM, the redemption option price, the implied volatility of SRM and related interest rates.

FTX and Alameda lawyers: The 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 the tokens and the contract was never performed, there was no Compensation issue: 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.

And 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 responded to the estimated compensation amount proposed by Tai Mo Shan Protests were made that this 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 does not need to pay any fees or interest and collateral, you can obtain 800 million SRM tokens. More details are very suspicious.

Previously, Kanav Kariya, CEO of Jump Trading’s encryption subsidiary “Jump Crypto”, announced his resignation last month, seemingly due to the CFTC’s investigation into the company.

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