Auros Filed For Bankruptcy After Being Stuck For $20 Million On FTX

Key Points:

• Cryptocurrency company Auros has filed for Chapter 11 bankruptcy due to liquidity exhaustion.
• The cause mentioned was due to being stuck for 20 million dollars on FTX.
• The company is currently seeking a court order of liquidation.

On December 20, according to The Block, Cryptocurrency Company Auros filed to begin bankruptcy proceedings in the British Virgin Islands.

“A substantial portion of the Company’s assets” worth about $20 million were held on FTX on November 11, when FTX filed for Chapter 11 bankruptcy protection in the United States, according to Auros. With those assets frozen, Auros was effectively insolvent.

It is a digital asset market maker and algorithmic trading platform that works through “a wide range of loans and financing arrangements with various lenders”. However, Auros found its ability to administer those arrangements was interested by exposure to the collapse of FTX, the filing said.

Auros is currently seeking a court order of liquidation and has recommended Interpath Advisory as the liquidator.

The full extent of FTX’s impact on the crypto market is currently unknown. Before that, many money companies had to file for bankruptcy because of their exposure to FTX. All eyes are on crypto companies on the verge of bankruptcy Genesis and DCG.

The SEC and the Commodity Futures Trading Commission (CFTC), along with federal prosecutors from the US Attorney’s Office have accused Bankman-Fried of being behind the entire fraud. This is considered one of the largest financial cases in American history.

According to federal regulators at the Commodity Futures Trading Commission (CFTC), just one month after the founding of FTX.com, Sam Bankman-Fried conspired to appropriate funds deposited by customers on the exchange to profit through the Alameda Research door.

On November 12, Sam Bankman-Fried was arrested creating the Bahamas will go to a Bahamas court to carry out the US extradition process. A criminal trial awaits this former CEO. By Bankman-Fried’s own calculation, he admitted his wrongdoing affected 4 million people.

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