Crypto firm Auros discloses provisional liquidation, thanks to FTX

• Auros suffered from a $20 million exposure in the FTX debacle.
• The company found itself in a situation where immediate liquidity was insufficient to meet lender recalls.

The troubled global crypto trading firm Auros Global revealed on 21 December that a British Virgin Islands court granted it a Provisional Liquidation request in November as part of its efforts to restructure outstanding debt to lenders.

Auros stated on Twitter yesterday (20 December) that the decision was influenced by the events surrounding the crypto exchange FTX, which declared bankruptcy in November.

The company found itself in a situation where immediate liquidity was insufficient to meet lender recalls. Management and the board of directors remained optimistic about the company’s long-term prospects.

The court order allows for a restructuring mechanism in which the incumbent management can continue to trade as Authorized Managers under the supervision of an external advisory firm while a restructuring plan is developed.

Interpath Advisory serves as the firm’s supervisor. Auros’ operations are expected to resume normally following the successful implementation of the restructuring.

$20 million exposure

According to the financial intelligence body OffshoreAlert, Auros suffered from a $20 million exposure in the FTX debacle. It also stated that Auros Global Ltd. filed for provisional liquidation on 16 November. On 23 November, however, the court granted the request.

Because the embattled trading firm has some $20 million in outstanding loans from credit pools on Maple Finance and Clearpool, the liquidity problems at Auros percolated to creditors on lending protocols.

On 30 November, M11 Credit took to Twitter to announce that Auros Global had failed to make the principal payment on a $3 million loan due to short-term liquidity issues.

Notably, Auros failed to repay $17.7 million in loans from Maple’s M11 Credit-managed USDC stablecoin and wrapped ether (wETH) credit pools.

Auros Global is one among the growing number of companies facing difficulties in the aftermath of FTX’s demise. On 11 November, FTX, along with several other companies led by Sam Bankman-Fried, filed for Chapter 11 bankruptcy.