Crypto Trading Firm Auros Granted Provisional Liquidation Following FTX Fallout

Auros Global, the troubled crypto trading firm and market maker, disclosed that it was granted a "Provisional Liquidation" request last month from a court in the British Virgin Islands, as part of efforts to restructure outstanding debt to lenders.

Auros said that the decision followed "the events that transpired around FTX," the crypto exchange formerly helmed by Sam Bankman-Fried that imploded in November.

"The company found itself in a position where immediate liquidity was insufficient to satisfy recalls from lenders," according to the statement. "Management and directors remained confident in the long-term prospects for the business."

Auros said that the court order allows for a "restructuring mechanism where the incumbent management is permitted to continue to trade in the capacity of 'Authorized Managers,' under the supervision of an external advisory firm, whilst a restructuring plan is being formulated."

"Upon the successful implementation of the restructuring, it is anticipated that Auros' operations would resume as normal," Auros said.

It's said that the firm had $20 million of funds frozen on FTX. The court granted the request on Nov. 23, Auros said. Financial advisory firm Interpath Advisory acts as supervisor, per the Auros statement.

Auros encountered liquidity troubles after the sudden implosion of FTX​. Multiple trading firms held a part of their funds on the exchange for trading purposes, and were subsequently hit when FTX halted withdrawals on Nov. 8 and filed for Chapter 11 bankruptcy protection on Nov. 11. Funds on the exchange are now tied up in a lengthy court proceeding.

Source: CoinDesk