Market Making Firm Auros Files for Bankruptcy With $20M in FTX

Algorithmic trading and market-making firm Auros which suffered contagion from the FTX Derivative Exchange implosion has filed for bankruptcy in the British Virgin Islands.

The firm confirmed that at the time when FTX fell into bankruptcy in November, Auros had $20 million worth of its assets tied up in the bankrupt firm. Euros became insolvent as a result of this tragedy.

Before now, the market-making firm was able to maintain its operations through “a series of loans and financing arrangements with various lenders.”

However, after FTX’s implosion and bankruptcy filing, the British Virgin Islands-based firm discovered that it could no longer manage such transactions. Auros has now sought an order from the court for liquidation.

To oversee its liquidation process, Auros has recommended Interpath Advisory as the liquidator. 

Crypto Firms Suffer FTX Contagion 

Auros is only one out of the many other crypto firms that were affected by the implosion of FTX. BlockFi began by suspending withdrawals and lending from its platform shortly after the liquidity crunch. At the time, the crypto lender affirmed that it lacked clarity on its next phase and therefore, asked users not to add funds to either their BlockFi wallets or the Interest Accounts. 

In no time, BlockFi filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey.

The bankruptcy filing covers BlockFi and its eight other subsidiaries. Almost immediately, BlockFi sued the Emergent Fidelity Technologies holding company of disgraced FTX founder Sam Bankman-Fried for Robinhood Markets (HOOD) shares held by the company and promised to BlockFi as collateral.

Similarly, crypto brokerage firm Genesis Global Trading paused withdrawal on its platform due to its FTX contagion. Genesis claimed that after news of FTX’s implosion became public, its users started initiating outrageous withdrawals which led to the decision to suspend the action. Presently, Genesis owes two groups of its creditors up to $1.8 billion.

The FTX implosion seems to be the largest fall in the crypto industry so far. Markedly, it is regarded as the largest financial case in all of America’s history. Regulators all over the world are concerned with how the collapse happened and are currently investigating