FTX, which suddenly went bankrupt in November 2022 and bloodshed the Bitcoin (BTC) and cryptocurrency markets, was sued again.
According to Coindesk, Jump Trading's subsidiary, Tai Mo Shan, filed a lawsuit against the SRM token delivery failure and demanded compensation of approximately $264 million.
Jump Trading subsidiary Tai Ho Shan sought $264 million in damages, claiming that FTX's sister company Alameda Research failed to deliver 800 million SRM of altcoins as part of a loan agreement.
However, the FTX Bankruptcy panel opposed Jump Trading's subsidiary Tai Ho Shan's claim and claims for damages. FTX denied the allegations and the claim for damages because the loan agreement with Alameda and Jump Trading subsidiary Tai Ho Shan had never been initiated.
Jump Trading said it calculated its loss based on an options model that uses factors such as the SRM price at the time FTX filed for bankruptcy, the call option price, the volatility of the SRM and the interest rate.
What is Serum (SRM)?
The altcoin named SRM is the native token of the decentralized exchange (DEX) Serum.
Towards the end of 2020, Jump Trading announced that it had made a significant investment in Serum (SRM) and would provide market making services.
After FTX went bankrupt in November 2022, the DEX collapsed, and insiders at the time claimed that the exchange was decentralized in name only but that orders came from FTX.
SRM, which exceeded $13 and made an ATH in September 2021, has since fallen by nearly 100% to $0.03.
*This is not investment advice.