FTX contagion may have “infected” this crypto trading firm, which is now facing a “liquidity problem.”

Sam Bankman-Fried, the former CEO of FTX, may have felt the same grief as the thousands of investors who have trusted him with their money, but the misery seems to continue, regardless of the excuses he offers.

Thousands of dissatisfied investors are still unable to sleep due to the nightmare caused by the collapse of one of the world’s largest crypto exchanges.

Now, the “infection” could manifest itself in the form of a crypto trading platform – Auros Global – experiencing “short-term liquidity symptoms” as a result of the FTX disaster.

The shockwave of the disaster called FTX

According to cryptocurrency trading firm Auros Global, a $3 million loan of 2,400 Wrapped Ether (wETH) has not been repaid. Multiple sources said on Thursday that the information was provided by pseudonymous credit pool manager M11 Credit, which oversees Maple Finance’s liquidity pools.

In a Twitter post, M11 Credit said:

“Auros has a short-term liquidity problem as a result of the FTX bankruptcy.”

M11 Credit has highlighted that the loan will not default simply because a payment is missed. The late payment instead triggered the “5-day grace period,” according to smart contracts.

The FTX “infection” – number of victims

With the announcement of FTX’s bankruptcy filing on Nov. 11, a handful of crypto and blockchain companies have filed or are in the process of filing for bankruptcy.

The FTX “infection” has now spread to other jurisdictions.

Genesis, a subsidiary of Digital Currency Group (DCG) and an institutional trading firm, has $175 million in locked money in its FTX trading account.

According to multiple news sources, the company’s creditors have hired legal advisers for the restructuring and are considering methods to avoid bankruptcy.

Compute North, a cryptocurrency mining company, filed for Chapter 11 bankruptcy on Sept. 22 with nearly half a billion dollars in debt.

This week, US-based lender BlockFi filed for bankruptcy, while adding to the misery of Sam Bankman-Fried and FTX with a lawsuit in the same court.

A hedge fund controlled by a subsidiary of German cryptocurrency platform Immutable Insight announced that it faces FTX’s demise and owes $1.5 million.

While Auros, an algorithmic trading and market-making firm, has yet to respond to M11 Credit’s claim, Maple Finance has retweeted the topic.

M11 credit claims it is “working with Auros” to offer lenders a joint statement with more information.

Crypto Total Market Cap at $810 Billion on Daily Chart | Featured Image by Narayana Health, Chart: TradingView.com

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers