Auros Strike by FTX Crash, Announces Provisional Liquidation
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Auros Struck by FTX Collapse
In a tweet, the insolvent cryptocurrency trading company and market maker explained that the choice was made in response to the events that unfolded surrounding FTX, the defunct cryptocurrency exchange that Sam Bankman-Fried oversaw and which collapsed in November.
The statement reads the Company found itself in a situation where immediate cash was inadequate to meet demands from lenders. The business's long-term outlook was still believed to be bright by management and the board.
OffShoreAlert - An Intelligence Website
Auros stated that it expected business to resume as usual when the restructure was successfully implemented. OffShoreAlert, an intelligence website, referenced a court document presented to the British Virgin Islands High Court on November 16 and claimed that the company had $20 million in money blocked on FTX.
Auros Global Ltd. allegedly filed a request for provisional liquidation on November 16 to OffshoreAlert, a monitoring website for financial institutions.
Chapter 11 Bankruptcy Protection
On November 23, according to Auros, the court approved the request. The Auros statement identifies Interpath Advisory as the administrator. After the abrupt collapse of FTX, the insolvent cryptocurrency trading company and market maker experienced liquidity issues.
In response to FTX's decision to prohibit withdrawals on November 8 and apply for Chapter 11 bankruptcy protection on November 11, several trading businesses that had placed a portion of their funds on the exchange for trading purposes were negatively impacted. The exchange's funds are currently entangled in a protracted legal battle.
