FTX Lawyers Dispute Jump Trading $264M Claim Over Unmaterialized Alameda Loan
The FTX bankruptcy estate is contesting a $264 million claim by Jump Trading’s subsidiary, Tai Mo Shan, regarding an undelivered loan of 800 million Serum (SRM) tokens from Alameda Research.
The estate argues that the loan never commenced, rendering the claim invalid.
The FTX bankruptcy estate is defending a significant claim made by Jump Trading’s subsidiary, Tai Mo Shan. The claim involves a loan agreement in which Alameda Research was supposed to deliver 800 million Serum (SRM) tokens.
Tai Mo Shan asserts that failing to deliver these tokens warrants $264 million in damages. However, FTX lawyers argue that because Alameda did not deliver the SRM tokens, the loan never commenced, thus invalidating the claim.
SRM was the native token of the decentralized exchange (DEX) Serum, which was significantly backed by FTX. Jump Trading made a major investment in Serum in the fall of 2020, offering market-making services.
The DEX collapsed after FTX went bankrupt in November 2022. Insiders had revealed that, despite its decentralized claims, Serum was effectively controlled by FTX.
The 800 million SRM tokens in question represent about 80% of the total SRM supply, significantly more than the 372.7 million currently in circulation.
In court documents, Jump Trading argued that the FTX-Alameda estate owes it more than $264 million in damages based on an options model, which considers the market price of SRM at the time of the bankruptcy filing, the repayment option price, SRM’s implied volatility, and the loan’s interest rate.
FTX’s lawyers contend that the loan agreement was never fulfilled.
“It is undisputed that Alameda failed to deliver the cryptocurrency contemplated by the Loan Confirmation to the Master Loan
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