Cryptocurrency trading firm Auros Global has missed a loan repayment of 2,400 Wrapped Ether (wETH) worth $3 million. The update<\/a> was shared by the institutional credit underwriter M11 Credit which manages liquidity pools on Maple Finance.<\/p>\n According to M11 Credit, Auros is experiencing a short-term liquidity issue as a result of FTX\u2019s insolvency. M11 Credit also stated that it is in close contact with its borrowers, particularly in light of recent events.<\/p>\n With the announcement of FTX\u2019s bankruptcy filing on 11 November, a number of crypto and blockchain companies have filed for bankruptcy or are about to do so.<\/p>\n Furthermore, crypto lending firm BlockFi declared<\/a> bankruptcy on 28 November. Galois Capital and New Huo Technology have also lost millions of dollars from FTX\u2019s collapse.<\/p>\n Crypto mining firm Compute North\u00a0filed<\/a>\u00a0for Chapter 11 bankruptcy on 22 September with almost $500 million in liabilities. Another mining firm Core Scientific\u2019s\u00a0filing<\/a>\u00a0with the Securities Exchange and Commission (SEC) last month revealed that the Texas-based mining company may run out of cash before the end of 2022.<\/p>\n As per the smart contracts, Auros Global has a 5-day grace period to repay its loan. If it does not make the loan payment by 5 December, it will be declared in default.<\/p>\n In the event of a default, the borrower\u2019s collateral could be liquidated and\/or staked maple tokens and USDC on the platform used to cover any shortfalls to lenders. New York courts could also be used to pursue enforcement action.<\/p>\n On 27 November, only three days before M11\u2019s announcement about Auros\u2019 short-term liquidity problems, the trading firm borrowed 2,000 wETH ($2.6 million) with a 14-day maturity. Auros owes M11\u2019s wETH credit pool on Maple<\/a> an aggregate of 8,400 wETH ($10.7 million).<\/p>\n It should, however, be noted that an algorithmic trading and market-making firm, Auros has not yet addressed the statement by M11 Credit.<\/p>\n<\/p><\/div>\nFTX debacle leads to crypto crisis<\/h3>\n
5-day grace period for Auros Global<\/h3>\n