FTX Rejects Jump Trading's Claim to Compensate 800 Million SRM Tokens 

Bittime - FTX has rejected claims from Jump Trading subsidiary Tai Ho Shan, which is seeking $264 million in damages for 800 million Serum tokens (SRM). This claim was filed based on allegations that Alameda failed to deliver promised tokens.  

Charges Filed Jump Trading  

Tai Ho Shan claimed that Alameda did not fulfill its obligations to deliver the promised 800 million SRM tokens, so they demanded compensation of $264 million. 

In court documents, Jump Trading used an options model to calculate their losses, which took into consideration the market price of SRM on the date of the bankruptcy filing, the price of the repayment option, SRM's implicit volatility, and the interest rate on the loan.

However, the FTX-Alameda management team rejected this claim and stated that the loan was never initiated because the SRM tokens were never delivered. 

Questions Regarding Valuation and Potential Fraud

FTX-Alameda also questioned the valuation amount proposed by Jump Trading, and said that Tai Ho Shan's loss calculation was completely unprovable and was based on a model option who is disabled. 

Additionally, there is no explanation or documentation to support the claim. FTX lawyers also alleged that Tai Mo Shan may have been involved in fraudulent transfers.  

The lawyer also highlighted that the Master Loan Agreement and Loan Confirmation state that Tai Mo Shan will receive 800 million SRM tokens without fees and interest, which is considered suspicious. 

Token Serum (SRM)

SRM is the native token of DEX Serum. At its peak in September 2021, SRM's price reached over $12.50 with trading volume reaching $1.2 billion. 

This surge created many millionaires in DEX Serum, which ultimately worried Sam Bankman-Fried, founder of FTX-Alameda. He is worried that employees will not work hard. However, SRM's value is now only about 3 cents, well below its peak.

Serum Goes Bankrupt After FTX

DEX Serum collapsed after FTX went bankrupt in November 2022. At that time, insiders said that the exchange was not actually decentralized because all orders came from FTX. 

Market data shows that the 800 million SRM tokens claimed by Tai Ho Shan would cover about 80% of the total of around 1 billion SRM in existence and more than 372.7 million current circulating supply. The token was scheduled to have a maximum supply of over 10.1 billion tokens, but this stalled due to its crash in 2022.

These claims and disputes demonstrate the complexity and risks involved in the crypto market, especially in bankruptcy situations. FTX's rejection of Jump Trading's claims will likely have a major impact on FTX-Alameda's bankruptcy and asset settlement process.  

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