NAIROBI (CoinChapter.com)— Within the ongoing saga of FTX’s chapter proceedings, legal professionals for the defunct crypto change have contested a $264 million declare by Leap Trading subsidiary Tai Mo Shan, centered round an alleged mortgage settlement with Alameda Analysis that reportedly by no means took off. FTX representatives preserve that the transaction by no means materialized.
Authorized Tensions Mount Over Non-Existent Mortgage
Tai Mo Shan lodged a declare for almost $264 million in damages, alleging that Alameda Analysis didn’t obtain 800 million Serum (SRM) tokens underneath a mortgage deal dated August 2020.
SRM serves because the native token of the FTX-supported decentralized change, Serum, which additionally fell into oblivion following FTX’s collapse in 2022. Regardless of these allegations, FTX representatives preserve that the transaction by no means materialized.
FTX’s authorized group argued that the core subject on this dispute is Alameda Analysis’s failure to ship SRM tokens as required by the Mortgage Affirmation underneath the Grasp Mortgage Settlement.
The assertion highlights a basic disagreement over the mortgage’s very existence, with FTX legal professionals arguing that there isn’t a floor to demand damages for a transaction that by no means occurred.
Leap Trading’s Calculation Technique Beneath Scrutiny
The strategy Leap Trading used to quantify the damages has come underneath fireplace. Calculated based mostly on SRM’s market worth on the time of FTX’s chapter, together with implied volatility and different derivatives, FTX legal professionals label this estimate as ‘wholly unsupportable.’
They argue that the choices mannequin used lacks transparency and fails to substantiate the hefty injury declare.
Furthermore, the defunct crypto change challenged the timing of the token supply stipulated within the mortgage settlement. It was alleged to start in every day installments ranging from August 1, 2023, not as a lump sum on the date of chapter.
The transfer additional complicates Tai Mo Shan’s claims, suggesting potential discrepancies within the contractual obligations.
Moreover, FTX’s submitting means that Tai Mo Shan may need been concerned in constructively fraudulent transfers in regards to the disputed mortgage. This allegation introduces one other layer of complexity, probably affecting the legitimacy of the declare.
FTX Collectors Voting on Liquidation Plan
In the meantime, FTX collectors have began voting on a liquidation plan for compensation to change prospects. They’ve till Aug. 16 to solid their votes. The change goals to obtain closing approval for the liquidation plan in October this yr.
The authorized dispute highlights the complexities and challenges confronted by the FTX chapter property because it navigates quite a few claims and makes an attempt to maximise recoveries for collectors. The result of this case will seemingly have vital implications for different claims in opposition to the property.