Former FTX CEO Sam Bankman-Fried may have apologized dozens of times for his company’s missteps, but nothing can stop the contagion.
Another casualty occurred in the name of Aurus Global, a crypto trading platform that is currently facing “short-term liquidity problems” due to FTX’s bankruptcy.
Aurus misses $3 million principle payout
An algorithmic trading and market-making firm has reportedly missed principal repayment on a 2,400 Wrapped Ether (wETH) decentralized financial loan worth about $3 million. This was revealed by M11 Credit, which happens to be an institutional credit underwriter.
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As a result of FTX bankruptcy, Auros is facing short-term liquidity issues. This does not mean that the loan is in default. We are working with Auros.Our top priority is to limit lender risk and we will continue to communicate with the Auros team regarding all open loans from the pool.
M11 Credit further emphasized that a late payment does not mean the loan has defaulted. Rather, a 5-day grace period was provided “according to the smart contract” because the deadline was missed. Auros is now working with its credit underwriters to issue a joint statement detailing detailed information for lenders.
Entities caught in the epic collapse of FTX Group
FTX filed for bankruptcy on November 11 after suffering a liquidity crisis and failing to make withdrawals. As a result, many companies in the market bore the brunt of the shock and were hit by the storm.
Genesis, an institutional investor subsidiary of Digital Currency Group (DCG), has $175 million in locked funds in its trading account on FTX.company creditors hired We are looking for ways to reorganize our lawyers and avoid filing for bankruptcy.
US-based render BlockFi submitted It ruled bankruptcy in a New Jersey court earlier this week and simultaneously filed suit in the same court, slapping Bankman-Fried.
Meanwhile, a hedge fund managed by a subsidiary of German crypto platform Immutable Insight has also revealed that it has been hit by FTX and has $1.6 million in debt.
FTX borrowed The 50 largest unsecured creditors total $3.1 billion, according to Delaware court filings. The plaintiff’s identity remained unknown, but filings show that two of the company’s largest customers owed him more than $200 million in debt, of which all 50 were each his own. owed more than $21 million in debt.
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