Crypto News- FTX attorneys rebut Jump Trading’s $264 million damages lawsuit
Crypto News– The FTX-Alameda bankruptcy estate contested Jump Trading subsidiary Tai Mo Shan’s $264 million claim related to a loan agreement involving Alameda Research. FTX’s legal team argued that the claim should be dismissed on grounds that the loan never actually materialized.
Tai Mo Shan alleged damages of nearly $264 million due to Alameda Research’s failure to deliver 800 million Serum (SRM) tokens, as per a loan agreement dating back to August 2020. SRM is the native cryptocurrency of Serum, a decentralized exchange backed by FTX, which ceased operations alongside FTX in 2022.
According to court documents, Jump Trading calculated the damages using an options model based on SRM’s market price at the time of bankruptcy filing, along with factors like implied volatility and option pricing.
FTX’s attorneys requested the court to reject the claim, emphasizing that the loan transaction was never fulfilled by Alameda Research.
FTX Challenges Jump Trading’s $264 Million Damages Claim
FTX-Alameda’s bankruptcy estate has contested Jump Trading subsidiary Tai Mo Shan’s $264 million damages claim, dismissing it as baseless and wholly unsupportable. FTX’s legal team argued that Jump’s damages calculation using an options model lacks clarity and fails to adequately explain how the amount was determined.
In its court filing, FTX also disputed Jump Trading’s estimation of damages based on the market price of Serum (SRM) tokens at the time of the bankruptcy filing. They pointed out that the loan agreement stipulated Tai Mo Shan would receive the tokens in daily installments starting from August 1, 2023, not on the bankruptcy petition date.
Furthermore, FTX’s filing alleged potential fraudulent transfer liability on the part of Tai Mo Shan, suggesting that certain transactions, including the disputed loan, might qualify as constructively fraudulent transfers. The debtors argue that Tai Mo Shan could have received funds through these transfers, the filing stated, indicating another ground for rejecting Tai Mo Shan’s claims.
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