Auros Resolves Liquidity With $17M Funding
Benjamin Roth, the Chief Investment Officer of Auros, has revealed that the company has effectively resolved its liquidity problems arising from the bankruptcy of the crypto exchange FTX.
Following a significant debt restructuring, Auros was recently released from court-supervised provisional liquidation and obtained a fresh investment of $17 million.
Vivienne Court Trading, a traditional high-frequency trading firm, and Bit Digital (BTBT), a public bitcoin mining company, led this investment. Meanwhile, the crypto trading firm had to engage in months of behind-the-scenes efforts to keep its business afloat following the collapse of FTX, which caused significant losses for several trading firms in the crypto industry.
Auros response to the liquidity crisis caused by FTX bankruptcy
The failure of Sam Bankman-Fried's exchange to repay its customers caused concerns about a broader insolvency crisis in the cryptocurrency market.
As a result, lenders began recalling their outstanding loans to minimise possible losses. Auros, whose funds were mainly tied up in FTX, suddenly faced a liquidity crisis and could not repay its creditors. Rather than attempting to repay lenders, it filed for provisional liquidation with the British Virgin Islands (BVI) court to engage with its creditors.
With the BVI's assistance, the firm could restructure its outstanding debts, including converting open-term loans into termed loans with a maturity date. Auros also addressed its $18 million in DeFi loans by repaying 55% of its debt on the blockchain-based credit platform Maple and spreading the remainder across three-month and nine-month loans.
Auros raises strategic funds to continue its operations
According to Roth, the company had plans to raise capital even before FTX's collapse. However, the court's supervision made it more challenging to raise funds. In a statement, Marcel Klooss, co-founder of Vivienne Court, stated that the two companies have complementary skills and distinct characteristics that will create continuous synergies. The crypto firm, expanding its derivatives solutions business to offer yield and protection services to clients, will have BitDigital as its second-largest investor and strategic partner.
The funding round also includes participation from Trovio, Primal Capital, Epoch Capital, and a group of senior and former traders from proprietary trading and market-making firm Optiver.
Marcel Klooss and Hughes Ching, co-founders of Vivienne Court and Bit Digital, respectively, will become members of the board of directors.
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