Jump Trading's subsidiary claims $264 million from FTX: "Still haven't received my SRM tokens"

Coindesk reports that high-frequency trading giant Jump Trading's affiliate, Tai Mo Shan, has filed a claim of up to $264 million against the defunct exchange FTX and Alameda for failing to deliver 800 million SRM tokens as per the contract.

FTX claim enters final stages, to choose between Bahamas or the US for claim by 8/16

Tai Mo Shan Claims $264 Million from FTX

As one of Robinhood's former largest market makers, Tai Mo Shan alleges that FTX owes it $264 million, involving undelivered 800 million SRM tokens.

What is SRM?

SRM is the native token of the decentralized exchange DEX Serum, which collapsed after FTX went bankrupt in November 2022.

Solana's leading DEX "Serum" Twitter account suspected of being sold! All past posts deleted, even hyping meme coins

As a shining star nurtured by SBF on Solana, SRM's price once peaked at over $12.50 per token in September 2021, with a monthly trading volume of $1.2 billion, now only at $0.03.

Prior to this, Jump Trading had announced a significant investment in Serum in 2020 and provided market-making services.

800 Million SRM Exceeds Current Circulating Supply

Coingecko data shows that the 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 tokens.

Jump Trading stated in court documents that they calculated the $264 million claim amount through an option model involving SRM market prices, option prices, SRM's implied volatility, and related interest rates.

FTX, Alameda Lawyers: Tokens Never Delivered, No Compensation Issue

FTX and Alameda Asset's lawyers argued that since Alameda collapsed before delivering the tokens, and the contract was never fulfilled, there is no compensation issue:

Undoubtedly, Alameda failed to deliver the SRM tokens as stipulated in the "Master Agreement," so the contract has not formally taken effect.

They further added, "The 'Master Agreement' also states that if the contract is not in effect, Tai Mo Shan's only recourse is to cancel the 'Confirmation Letter.'"

They also protested against Tai Mo Shan's estimated compensation amount, claiming it is based on a flawed option model that cannot support the theory, providing no detailed explanation or documentation on how the amount was derived.

Additionally, they raised concerns about the legality of Tai Mo Shan's actions and the validity of the loan contract, suggesting the company may be involved in illegal asset transfers:

The Master Agreement and Confirmation Letter indicate that Tai Mo Shan can obtain 800 million SRM tokens without paying any fees, interest, or collateral, raising further suspicions about the details.

Earlier, Kanav Kariya, CEO of Jump Trading's crypto subsidiary "Jump Crypto," seemed to have resigned last month amid a CFTC investigation into the company.

Unable to withstand CFTC investigation? Jump Crypto Head Resigns after Wormhole, Terra Incidents