The cryptocurrency trading company Auros Global appears to be suffering from FTX contagion after defaulting on a 2,400 wETH loan.
The institutional credit underwriter M11 Credit, which manages liquidity pools at Maple Finance, told followers in a Twitter thread on Nov. 30 that Auros had missed a payment on a 2,400 wETH loan, the total value of which is about $3 million..
M11 Credit suggests that you are always in close communication with your borrowersespecially after the events of the last month, and said that Auros is experiencing a “short-term liquidity problem as a result of FTX’s insolvency”.
We remain committed to providing transparent updates whenever possible, and are working with Auros to provide a joint statement that provides further information to lenders.
If you have any questions, feel free to reach out at [email protected]
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— M11Credit (@M11Credit) November 30, 2022
We remain committed to providing transparent updates wherever possible, and are working with Auros to provide a joint statement that provides more information to lenders. If you have any questions, feel free to contact us at [email protected]
While Auros, an algorithmic trading and market making firm, has yet to address M11 Credit’s statement, the thread has been retweeted by Maple Finance itself.
M11 Credit has also stressed that default does not mean that the loan is in default. On the contrary, the default has triggered a “5-day grace period under smart contracts”.
This implies that Auros has until December 5 to make the late payment before it is declared in default.
According to an official Maple Finance video on Youtube, if a default occurs, it could result in the borrower’s collateral being liquidated and/or USDC and Maple tokens being put into play on the platform to cover any shortfalls by the lenders. Enforcement action could also be pursued through New York courts.
M11 Credit states that it is “working with Auros to provide a joint statement that provides more information for the lenders.”
Cointelegraph has reached out to both M11 Credit and Auros for comment on the situation, but has not heard back by press time.
Crypto exchange FTX announced on November 11 that it would file for bankruptcy after having suffered a liquidity crisis and not being able to meet the withdrawals of its clients. The resulting contagion has spread to numerous other companies. BlockFi filed for bankruptcy on November 28.
Galois Capital and New Huo Technology have lost millions of dollars from the FTX collapse, and Nestcoin has had to lay off workers for its exposure to the failed exchange..
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