The FTX crisis negatively affected many companies in the cryptocurrency market. Many affiliated companies that FTX funds have suffered greatly in recent weeks. Alongside companies like Genesis, BlockFi, cryptocurrency platform Auros has now filed for bankruptcy protection. Here are the details…
Another cryptocurrency company has filed for bankruptcy
According to court documents, Auros was affected by the freeze of approximately $20 million in corporate assets in FTX. He subsequently filed for bankruptcy protection in the British Virgin Islands. According to court documents, market maker Auros has filed for bankruptcy proceedings in the British Virgin Islands.
Auros, a crypto-asset market maker and algorithmic trading platform, continued its operations through “a series of loan and financing arrangements with various lenders.” But the document said it found the capacity to manage deals affected by Auros’ exposure to FTX’s collapse. Auros is headquartered in the British Virgin Islands.
A “significant portion of company assets” – roughly $20 million – stood in FTX on Nov. That was when FTX filed for Chapter 11 bankruptcy protection in the US, according to Auros. With these assets frozen, Auros virtually went bankrupt. Auros is now seeking a liquidation order by the court. Moreover, he recommended Interpath Advisory as the liquidator.
What had happened?
As we reported on Kriptokoin.com, corporate loan contractor M11 Credit, which manages the liquidity pools at Maple Finance, told its followers on Twitter on November 30 that Auros missed the principal payment of 2,400 wETH loans, worth approximately $3 million in total. M11 Credit claimed that it has always been in close contact with its borrowers, especially after the events of last month. Thus, he said, Auros had a “short-term liquidity problem as a result of the FTX bankruptcy.”
M11 Credit also emphasized that non-payment does not mean that the loan is in default. Instead, the missed payment triggered a “five-day grace period according to smart contracts.” Crypto exchange FTX has announced that it will file for bankruptcy on November 11 after experiencing a liquidity crisis and being unable to process withdrawals. The resulting contagion spread to many other companies. BlockFi declared bankruptcy on November 28.
According to an official Maple Finance YouTube video, if a default occurred, it could result in the use of the Maple token and USD Coin. Enforcement action can also be pursued through the New York courts. Galois Capital and New Huo Technology lost millions of dollars due to the collapse of FTX. Nestcoin had to lay off workers due to exposure to FTX. Now, as expected for some time, Auros has filed for bankruptcy.