Maple Finance’s altcoin Maple (MPL), It fell on Monday after Orthogonal Trading was revealed to have defaulted on a $31 million loan under the Maple Finance protocol.
Altcoin Price Drops After Company That Owes Maple Finance $31M Bankruptcy
M11 Credit, one of the Maple Finance pool representatives, sent a default notice to Orthogonal Trading yesterday, claiming that the company has $31 million in outstanding debt and cannot pay these debts.
M11 Credit uses the services of Maple Finance to issue loans to interested parties. Maple Finance is not involved in the lending process other than providing technical services.
The platform’s MPL altcoin has lost value on the developments and is trading at $5.23 at the time of this writing. The token has dropped 26.44% in the last 24 hours.
Orthogonal Trading defaulted on $36 million, representing approximately 30% of active loans in the entire protocol. The assets of the fund in question were recently stuck inside with the bankruptcy of FTX.
According to a statement, Maple Finance is both a cryptocurrency severed all ties with Orthogonal Trading, the parent organization that runs both a hedge fund and a loan business.
Maple Finance will remove Orthogonal Trading as a borrower on the platform and Orthogonal Credit as an agent and close lending pools.
It’s not unusual to miss payments or default completely, especially in crypto these days; however, what is unusual is that M11 and Maple both claim that Orthogonal misrepresents the scope of its obligations.
According to M11, Orthogonal Trading had only disclosed limited exposure to FTX, but this weekend the company informed M11 and Maple Finance that its losses were much larger than previously announced.
*Not investment advice.
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