Auros bankruptcy protection filing shows it lost $20m to FTX

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Crypto Regulation
Auros bankruptcy protection filing shows it lost $20m to FTX

Auros’ bankruptcy protection filing shows the decentralized finance project lost $20 million to the now-defunct FTX exchange. The firm has filed a liquidation request in a British Virgin Islands court and has chosen Interpath Advisory as its liquidator, 

Auros – another victim of FTX

While researchers have revealed that the abrupt collapse of the disgraced and jailed Sam Bankman-Fried’s empire is not the gloomiest event in the crypto industry in 2022, the level of devastation it has brought upon the cryptoverse is quite unprecedented.

According to sources close to the latest development, Auros, one of the numerous victims of the FTX contagion, lost about $20 million due to its exposure to the company. 

For the uninitiated, Auros is an algorithmic trading and cryptoasset market maker that delivers liquidity to exchanges and token projects.

Per a court filing viewed by The Block, Auros ran its business via loans and financing arrangements with various lenders. However, due to the collapse of FTX, the former’s funds got stuck in the latter and as such, it could no longer repay its creditors or continue normal operations.

Auros has now filed an application at a British Virgin Islands court to be liquidated, and the project has named Interpath Advisory, the United Kingdom’s largest business advisory, and restructuring firm, as its liquidator.

In related news, as reported by crypto.news on Dec. 20, FTX has hinted at plans to recoup all payments and donations made to U.S. politicians by SBF. 

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Ogwu Osaemezu Emmanuel

Ogwu Osaemezu Emmanuel is a graduate of Mass Communication and Media Studies. He joined the blockchain movement in 2016 when a friend of his introduced him to an investment platform accepting bitcoin. He has never looked back since then. Emmanuel believes the world needs real change and freedom from poverty. He sees crypto and the underlying distributed ledger technology as the catalyst to a better future for all.