- Maple Finance said that it does not do business with “bad actors”.
- The firm severed all links due to the alleged falsification of finances.
After the demise of FTX, the blockchain-based institutional capital marketplace Maple Finance declared on the 5th that it will sever all links with Orthogonal Trading due to the alleged falsification of finances.
Maple Finance claims that the decision was made because Orthogonal Trading had been “operating while effectively insolvent” for the prior four weeks. Failing to disclose that it could not make loan repayments until December 3. This rendered it impossible for the company to carry on operations without external intervention.
Arbitration or Litigation as Necessary
Maple Finance said that it does not do business with “bad actors.” That intentionally provide false information about their financial situation.
The company stated:
“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.”
The Orthogonal Credit team, in contrast to its trading arm. Performed with “integrity and professionalism,” according to Maple, who also said that the team is presently seeking strategic alternatives.
In the wake of the demise of FTX and Alameda Research, ripples may be seen across the cryptocurrency industry. With major deficiencies in its due diligence, including falling asset quality and unclear capital policy, Orthogonal Credit said on November 9 that it would be closing Alameda Research’s dedicated borrower pool on Maple Finance in the second quarter of 2022.
After providing $288 million in loans into a pool designated for Alameda between November 2021 and May 2022, the business stopped making loans to Alameda in May due to the assessment.
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