Jump Trading subsidiary demands $264 million from FTX

The demands are related to an outstanding loan in SRM tokens

11.07.2024 - 08:35

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2 min

What’s new? Tai Mo Shan, a subsidiary of the market maker Jump Trading, is demanding through the court from the affiliated with the bankrupt crypto exchange FTX hedge fund Alameda Research to return $264 million. The claims relate to a loan promised but not delivered in Solana blockchain-based decentralized exchange (DEX) Serum (SRM) native tokens.

Material by CoinDesk

What else is known? In the fall of 2020, Jump Trading announced that it had invested a significant unnamed amount in Serum and became its market maker partner. However, shortly after the bankruptcy of FTX and Alameda in November 2022, Serum also collapsed. On November 29, the team announced the closure of the project, noting that it faced difficulties due to the collapse of FTX. At the same time, the developers allowed the possibility of forking the network.

In a new lawsuit, Jump Trading claims that Alameda owes more than $264 million for 800 million SRM tokens, which is more than 80% of the maximum supply and exceeds the volume of coins in circulation ($373 million).

The amount was derived based on SRM’s market price on the date of the bankruptcy filing, the redemption option price, SRM’s implied volatility, and the interest rate on the loan among other metrics.

According to CoinDesk Indexes, the SRM rate peaked above $12,5 in September 2021 with a trading volume of $1,2 billion. SRM is currently trading at $0,03, having lost 4% overnight. Market capitalization is $11,6 million, according to this indicator, the coin is in the 1225th place in the overall ranking of cryptocurrencies.

FTX’s lawyers challenged the claim, emphasizing that the loan disbursement was not made and Tai Mo Shan itself may be involved in fraudulent transfers.

Last month, crypto investment platform Yield App announced it would cease operations due to FTX’s bankruptcy.

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