Cryptocurrency trading company Auros Global appears to be suffering from an FTX infection after defaulting on the principal of a 2,400 Wrapped Ether (wETH) decentralized finance (DeFi) loan.
Institutional loan underwriter M11 Credit, which manages Maple Finance’s liquidity pool, told followers on a Twitter thread on Nov. 30 that Auros was unable to repay the principal of a 2,400 wETH loan totaling about $3 million. I already told you.
M11 Credit indicated that it has always been in close contact with its borrowers, especially since last month’s events, and said that Auros is experiencing “short-term liquidity problems as a result of the FTX bankruptcy.”
Algorithmic trading and market making company Auros has yet to respond to M11 Credit’s statement, and Maple Finance itself has retweeted the thread.
M11 Credit also emphasizes that late payments do not mean that the loan is not repaid. Instead, the late payment resulted in a “five-day grace period based on a smart contract.”
This means that Auros has until December 5 to make late payments before it defaults.
According to the official Maple Finance Youtube video, in the event of a default, the borrower’s collateral and/or staked Maple and USDC tokens can be liquidated on the platform and used to cover the lender’s shortfall. Enforcement action may also be brought through the New York courts.
M11 Credit says it is “working with Auros to provide lenders with a joint statement with more information.”
Cointelegraph has reached out to M11 Credit and Auros for comment, but has not received a response as of press time.
Cryptocurrency exchange FTX announced on November 11 that it would file for bankruptcy after it faced a liquidity crunch and was unable to process withdrawals. As a result, the infection spread to many other companies. BlockFi filed for bankruptcy on November 28th.
Galois Capital and New Huo Technology lost millions due to the FTX collapse, and Nestcoin had to lay off workers after a failed exchange.