Jump Trading subsidiary Tai Mo Shan, a high-frequency trading giant, has filed a claim against FTX and Alameda for failing to deliver 800 million SRM tokens as per their contract. The claim amounts to a staggering $264 million.
Tai Mo Shan, one of the largest market makers like Robinhood, alleges that FTX owes them $264 million, involving the undelivered 800 million SRM tokens.
SRM is the native token of the decentralized exchange (DEX) Serum but collapsed after FTX’s bankruptcy in November 2022.
Jump Trading had previously invested significantly in Serum in 2020 and provided market-making services.
According to Coingecko, the 800 million SRM tokens account for 73.3% of the existing approximately 1.09 billion SRM, even surpassing the current circulating supply of 370 million tokens.
Jump Trading estimates the claim amount of $264 million using an options model involving SRM market prices, option prices, implied volatility of SRM, and related interest rates.
FTX and Alameda argue that there is no compensation issue as Alameda collapsed before delivering the tokens, and the contract was never fulfilled.
They also protest against the estimated compensation amount provided by Tai Mo Shan, claiming it is based on a flawed options model that cannot be supported and lacks detailed documentation.
Furthermore, they question the legality of Tai Mo Shan’s actions and the validity of the loan contract, suggesting potential involvement in illegal asset transfers.
Earlier, Kanav Kariya, CEO of Jump Trading’s crypto subsidiary Jump Crypto, announced his departure, seemingly in response to an investigation by the CFTC.
FTX, Alameda, Serum, SRM, and Tai Mo Shan are the key players in this case.