Yet Another Crypto Trading Firm Is Affected by FTX Contagion
Aurus has not yet verified the matter formally, but M11 Credit has promised that a joint statement is being drafted.
Former FTX CEO Sam Bankman-Fried may have apologized a hundred times for the company’s failure, but it’s too late to halt the spread.
Another victim was the crypto trading platform Aurus Global, which is presently experiencing a “short-term liquidity issue” due to FTX’s collapse.
Aurus Fails to Make a $3M Principal Payment
The algorithmic trading and market-making company skipped a principal payment on a decentralized financing loan of 2,400 Wrapped Ether (wETH) worth around $3 million. This information was disclosed by “M11 Credit,” an institutional credit underwriter.
Its tweet on the same subject,
“Auros is experiencing a short-term liquidity issue due to the FTX insolvency. This does not mean the loan is in default. We are working with Auros, who have acted promptly and responsibly. Our top priority is to limit the risk for our lenders. We will continue liaising with the Auros team regarding all their available loans from our pools.”
M11 Credit underlined further that the missing payment does not constitute loan default. Instead, the disappeared deadline has resulted in a 5-day grace period “as per the smart contracts.” Auros is now collaborating with the credit underwriter to release a joint statement providing lenders with more information.
Entities Caught In FTX Group’s Epic Collapse
On November 11th, FTX filed for bankruptcy after experiencing liquidity difficulty and failing to fulfil withdrawals. Consequently, several market enterprises experienced the brunt of the effect and were directly affected by the storm.
Genesis, a Digital Currency Group (DCG) subsidiary and institutional trading business, has $175 million in locked money in its FTX trading account. Creditors have retained restructuring attorneys and are examining alternatives to filing for bankruptcy.
This week, US-based lender BlockFi filed for bankruptcy in a New Jersey court and concurrently sued Bankman-Fried in the same court.
A hedge fund controlled by a German cryptocurrency platform, Immutable Insight subsidiary, disclosed that it is exposed to FTX’s downfall and owes $1.6 million.
A petition with the Delaware court indicates that FTX owes its 50 biggest unsecured creditors a total of $3,1 billion. The claimants’ identities remained unknown, but the documents show that two of its top clients are due more than $200 million, and all fifty of them are owed at least $21 million apiece.
