Cryptocurrency Trading firm Auros Global has been impacted by the collapse of FTX, with exposure to $20 million of the crisis. FTX released a statement indicating that they will be able to return to usual operations after the implementation of a restructuring plan.
Auros statement on recent media references – pic.twitter.com/9RFHhYjHqz
— Auros (@Auros_global) December 20, 2022
Auros Global issued a statement concerning the implications of the FTX collapse, noting that the company was in need of immediate liquidity to cover lender withdrawals. Despite the setback, senior management remains confident that they can navigate the current situation.
The statement also mentioned the need for a restructuring program that would be overseen by an external advisory firm. It is expected that once the restructuring plan has been put into motion, the company’s operations will return to normal.
Furthermore, Auros Global filed for a Provisional Liquidation Order, which is commonly used by companies in need of a financial makeover. This allows the company to address their cash flow problems through corporate restructuring while still remaining solvent.
Related: BlockFi Files Motion To Return Frozen Crypto To Wallet Users
Previously, Cointelegraph reported on the default of a 2,400 wrap Ether (wETH) loan from Auros Global that was due to the FTX crisis. M11 Credit, a credit underwriter managing the liquidity pool at Maple Finance, tweeted about the missed payment of the $3 million loan on Nov. 30.
Auros Global is only one of the companies affected by the downfall of FTX, which filed for Chapter 11 bankruptcy on Nov. 11.