FTX contagion haunts yet another crypto trading firm

Former FTX CEO Sam Bankman-Fried may have apologized dozens of times for his company’s failure, but there is no stopping the contagion.

Another casualty came in the name of a crypto trading platform – Aurus Global – which is currently facing a “short-term liquidity problem” due to the FTX insolvency.

Aurus lacks principal payment amount of $3 million

The algorithmic trading and market-making firm has reportedly missed a principal repayment on a 2,400 Wrapped Ether (wETH) decentralized finance loan worth around $3 million. This was revealed by ‘M11 Credit’, which happens to be an institutional credit provider.

It is chirping about the same reading,

“Auros is experiencing a short-term liquidity problem as a result of the FTX insolvency. This does not mean that the loan is in default. We are cooperating with Auros, who have acted quickly and responsibly. Our highest priority is to limit the risk to our lenders. We will continue our contact with Auros team when it comes to all open loans from our pools.”

M11 Credit further emphasized that the non-payment does not correspond to default on the loan. Rather, the missed deadline has provided a grace period of 5 days “according to smart contracts.” Auros is currently working with the credit guarantee to publish a joint statement with additional information to lenders.

Entities captured in epic collapse of FTX Group

FTX filed for bankruptcy on November 11 after suffering a liquidity crisis and failing to honor withdrawals. As a result, many companies in the market bore the brunt of the impact and were directly affected by the storm.

Digital Currency Group (DCG) subsidiary and institutional trading firm Genesis has $175 million in locked funds within the firm’s trading account on FTX. The firm’s creditors hired restructuring lawyers and are exploring ways to avoid filing for bankruptcy.

US-based lender BlockFi filed for bankruptcy earlier this week in a New Jersey court, while Bankman-Fried struck with a lawsuit in the same court.

Meanwhile, a hedge fund managed by a subsidiary of German crypto platform Immutable Insight also revealed it is exposed to FTX’s fallout and owes $1.6 million.

FTX owes its 50 largest unsecured creditors a total of $3.1 billion, according to a Delaware court filing. The identity of the claimants remained unknown, but the filings show that two of the largest customers owe more than $200 million, while all 50 of them owe $21 million or more each.

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