Crypto Trader Auros Global Misses Payment on DeFi Loan As FTX Contagion Spreads
Auros Global, a crypto trading firm, is the latest to face liquidity problems following the FTX collapse as it missed payment Wednesday on a decentralized finance (DeFi) loan.
The firm borrowed 2,400 of wrapped ether (wETH), worth about $3 million, from a credit pool on Maple Finance, a DeFi lending platform.
“Auros is experiencing a short-term liquidity issue as a result of the FTX insolvency,” credit pool manager M11 Credit tweeted.
We would like to provide an update regarding Auros, who today missed the principal payment on a loan of 2400 wETH which triggered a 5-day grace period as per the smart contracts.— M11 Credit (@M11Credit) November 30, 2022
Auros joins other digital asset firms such as BlockFi and Genesis Global Capital facing financial difficulties as contagion spreads within the crypto industry. This phase of the now year-long market rout started as crypto exchange FTX and its corporate sibling Alameda Research became insolvent and filed for bankruptcy protection earlier this month.
Read more: FTX Files for Bankruptcy Protection in US; CEO Bankman-Fried Resigns