FTX Contagion haunts yet another crypto trading firm

Former FTX CEO Sam Bankman-Fried may have apologized dozens of times for the failure of his company, but nothing stops the contagion.

Another victim came on behalf of a crypto trading platform – Aurus Global – which is currently facing a “short-term liquidity problem” due to FTX’s insolvency.

Aurus misses $3 million principal payment amount

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

His Tweeter concerning the same reading,

“Auros is experiencing a short-term liquidity problem due to FTX’s insolvency. This does not mean the loan is in default. We are working with Auros, who acted quickly and responsibly. Our top priority is to limit risk to our lenders We will continue to liaise with the Auros team regarding all their open loans from our pools.

M11 Credit further pointed out that the missed payment does not mean that the loan is in default. Instead, the missed deadline resulted in a 5-day grace period “in accordance with smart contracts”. Auros is currently working with the credit underwriter to issue a joint statement detailing additional information to lenders.

Entities caught in the epic collapse of the FTX Group

FTX filed for bankruptcy on Nov. 11 after suffering a liquidity crunch and failed to honor withdrawals. As a result, many businesses 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 funds locked in the firm’s trading account on FTX. The company’s creditors hiring restructuring of lawyers and exploring ways to avoid filing for bankruptcy.

The American lender BlockFi deposit for bankruptcy earlier this week in a New Jersey court, simultaneously slapping Bankman-Fried from a lawsuit in the same court.

Meanwhile, a hedge fund run by a subsidiary of German crypto platform Immutable Insight also revealed that it was exposed to FTX fallout and owed $1.6 million.

FTX must its 50 largest unsecured creditors total $3.1 billion, according to a Delaware court filing. The identities of the plaintiffs remained unknown, but documents show that two of its largest clients owe more than $200 million, while all 50 of them each owe $21 million or more.