FTX estate disputes Jump Trading’s $264 million claim over unmaterialized Alameda loan
FTX property disputes Leap Tradingâs $264 million claim over unmaterialized Alameda loan FTX property disputes Leap Tradingâs $264 million claim over unmaterialized Alameda loan
The dispute centers around a loan settlement between Alameda Overview and Leap Trading's subsidiary, Tai Mo Shan.
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The FTX monetary catastrophe property is contesting a $264 million claim made by Leap Trading’s subsidiary, Tai Mo Shan, referring to an undelivered loan of 800 million Serum (SRM) tokens from Alameda Overview.
Alameda Overview failed to carry the 800 million SRM tokens as stipulated within the loan settlement. This failure is central to the dispute, as FTX lawyers argue that the loan by no manner commenced because the tokens weren't delivered.
The legal battle is a essential style within the continuing efforts to gain to the underside of the monetary fallout from FTX’s collapse.
Serum loan
The dispute centers around a loan settlement titillating Alameda Overview, which turned into presupposed to carry 800 million Serum (SRM) tokens to Leap Trading’s subsidiary, Tai Mo Shan.
This settlement turned into fragment of a better technique to toughen the decentralized alternate (DEX) Serum, which turned into carefully backed by FTX. Leap Trading made a appreciable funding in Serum within the autumn of 2020, offering market-making services and products.
Nonetheless, the DEX collapsed following FTX’s monetary catastrophe in November 2022, revealing that regardless of its decentralized claims, it turned into effectively controlled by the defunct alternate. The loan turned into slated to launch in 2023 and by no manner materialized because of FTX’s collapse.
Tai Mo Shan asserts that the company’s failure to carry these tokens warrants $264 million in damages, which the alternate is responsible for. Nonetheless, FTX lawyers counter that since Alameda did now now not carry the SRM tokens, the loan settlement is void beneath the Grasp Mortgage Settlement, which permits for nullification if a loan does now now not launch.
In accordance with FTXâs legal team:
“It is undisputed that Alameda failed to carry the cryptocurrency contemplated by the Mortgage Affirmation to the Grasp Mortgage Settlement. The loan, therefore, did now now not launch.”
FTX’s legal team also suggested that the terms of the loan settlement, which eager offering 800 million SRM tokens with out any payment or ardour, would possibly per chance per chance also imply fraudulent transfers. They indicate that further discovery would possibly per chance per chance also list extra about these possible fraudulent transfers.
The court filings divulge:
“For the explanations talked about here and extra following discovery, Tai Mo Shan will seemingly be at threat of the Debtors for fraudulent transfers.”
Circulating supply lower than loan
The 800 million SRM tokens in search data from remark about 80% of the total SRM supply, vastly better than the 372.7 million currently in circulation.
SRM turned into one amongst the prominent tokens backed by FTX and Alameda Overview. It peaked at appropriate over $12.50 in September 2021, with a trading quantity of $1.2 billion. As of press time, SRM is worth approximately 3 cents.
Leap Trading’s claim for $264 million in damages is in step with an alternatives model that considers the market label of SRM at the time of the monetary catastrophe submitting, the compensation chance label, SRM’s implied volatility, and the loan’s ardour payment.
FTX lawyers challenged the valuation and said it turned into “wholly unsupportable.” They criticized the alternatives model long-established for calculation as inaccurate and lacking certain documentation.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. That specialise in monetary journalism, he now specializes in crypto reporting.
News Desk
CryptoSlate is a comprehensive and contextualized supply for crypto data, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.
Most contemporary Alpha Market Document
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Serum is a decentralized alternate (DEX) constructed on the Solana blockchain.
FTX
FTX is a defunct cryptocurrency alternate, currently in monetary catastrophe lawsuits, that turned into based by Sam Bankman-Fried and Zixiao “Gary” Wang in May per chance per chance 2019.
Alameda Overview
Alameda Overview turned into as soon as a most valuable trading company, running as an arm of the failed crypto alternate, FTX.
Leap Crypto
Leap Crypto is a division of Leap Trading Community, a examine-driven quantitative trading company and one amongst the greatest merchants, by quantity, across frail asset classes.
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