Crypto trading company Auros Global is suffering from an FTX infection after failing to pay the principal of a decentralized finance (DeFi) loan of 2,400 Wrapped Ether (wETH).
Institutional loan underwriter M11 Credit, which manages Maple Finance's liquidity pools, told followers on Twitter on November 30 that Auros was unable to repay $200,000 to $3 million in principal on a 2,400 WETH loan.
M11 Credit hints that it will be in close contact with borrowers, particularly after last month's events, with Auros facing "short-term liquidity problems due to the FTX default".
Algorithmic trading and marketing firm Auros has yet to respond to M11's credit statement, but Maple Finance itself has reissued the check.
M11 pointed out that late payment of credit does not mean that the loan has not been repaid. Instead, the missed payment triggered a "5-day grace period for smart contracts."
This means Auros has until December 5 to make the pending payment before being declared in default.
According to Maple Finance's official YouTube video, if a payment default occurs, it can void the borrower's collateral and/or the use of Maple tokens and USD coins (USDC) on the platform to cover any default by the lender. There are also injunctions in New York courts.
M11 Credit said it is "working with additional information from lenders to partner with Auros."
Cointelegraph reached out to M11 Credit and Auros for comment, but they did not respond by press time.
Cryptocurrency exchange FTX filed for bankruptcy on November 11 after experiencing liquidity problems and failing to complete the exit process. As a result, the disease spread to many other commercial establishments. On November 28, BlockFi filed for bankruptcy.
Galois Capital and New Huo Technology lost millions due to the failure of FTX, while Nestcoin had to lay off employees due to the failure of the exchange.