According to Maple Finance, Orthogonal Trading had been “operating while effectively insolvent” and is in need of outside investment to run.
Blockchain-based institutional capital marketplace Maple Finance announced on Dec 5 that it plans to cut all ties with Orthogonal Trading due to alleged misrepresentation of finances following the collapse of FTX.to cut all ties with the trading firm because it misrepresented its finances over the last four weeks and only recently admitted on Dec. 3 that it could not meet loan repayments.
Maple Finance shared that it refuses to work with “bad actors” who misrepresent their finances. The company shared: “Misrepresentation like this is in violation of Maple’s agreements and all appropriate legal avenues to recover funds will be pursued including arbitration or litigation as necessary.” While Maple Finance has issued a"Notice of Termination to Orthogonal Credit as a Pool Delegate,” severing all ties with the firm, it maintains that its smart contract would still be used to protect assets in the Orthogonal Credit pool. Maple said it does not foresee any impact on lenders in the Orthogonal Credit pool because"all loans remain active with no current signs of distress.
Maple shared that the Orthogonal Credit team, unlike its trading arm, acted with “integrity and professionalism” and is currently looking for strategic solutions “as an independent entity.”The fallout from the collapse of FTX and Alameda Research appears to bestill spreading within the cryptocurrency community.in the second quarter of 2022 after identifying “key weaknesses” in its due diligence.
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