The ongoing legal battles continue to unfold, shaping the future of the industry. As a specialized news writer well-versed in the intricate terminology and developments of this sector, I am excited to shed light on the latest developments surrounding the FTX bankruptcy case.
FTX Lawyers Challenge Jump Trading’s Damage Claims
The FTX-Alameda bankruptcy estate has taken a firm stance against the $264 million damage claims made by Jump Trading subsidiary Tai Mo Shan. According to the court filings, FTX lawyers argue that the claim is invalid as the loan agreement in question never materialized.
Tai Mo Shan had claimed nearly $264 million in damages from Alameda Research’s non-delivery of 800 million Serum (SRM) tokens, a loan agreement dating back to August 2020. SRM is the native cryptocurrency of the FTX-backed decentralized exchange Serum, which collapsed alongside the FTX exchange in 2022.
FTX lawyers, however, have sought the court to disallow this claim, stating that the loan was never delivered by Alameda Research. “It is undisputed that Alameda failed to deliver the cryptocurrency contemplated by the Loan Confirmation to the Master Loan Agreement. The loan therefore did not commence,” the FTX estate lawyers said in the court filing.
Challenging the Damage Calculation
Furthermore, the FTX estate has challenged Jump Trading’s $264 million estimate of damages, describing it as “baseless.” FTX lawyers argued that Jump’s calculation using the “options model” is vague and does not clearly explain how it arrived at the damage amount.
The filing also pointed out that while Jump estimated the damages based on SRM’s price as of the bankruptcy petition date, the loan agreement did not set Tai Mo Shan to receive the tokens on that day but rather in daily installments starting August 1, 2023.
“The debtors submit that Tai Mo Shan may have been the recipient of certain constructively fraudulent transfers…including the purported loan at issue here,” the filing said.
FTX Creditors Vote on Liquidation Plan
Meanwhile, FTX creditors have started voting on a liquidation plan for compensation to exchange customers and have until August 16 to cast their votes. The exchange aims to receive the final approval for the liquidation plan in October this year.
As the FTX bankruptcy proceedings continue, the industry closely watches the unfolding developments, which will undoubtedly have far-reaching implications for the future of cryptocurrencies and the broader financial ecosystem.