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Crypto Firm Orthogonal, Victim of FTX Contagion, Now Faces Internal Dissent
Story by Krisztian Sandor • Yesterday 2:22 PMRifts have emerged between defaulted crypto trading firm Orthogonal Trading and its own lending unit, Orthogonal Credit, after an apparent default on some $36 million of loans on the blockchain-based lending platform Maple Finance.
Rancor and dissent have broken out between units of Orthogonal Trading after $36 million of loan defaults on the crypto lending platform Maple Finance. (Charles Altamont Doyle/Creative Commons, modified by CoinDesk)© Provided by CoinDesk
On Monday, Maple said it had severed ties with Orthogonal Trading after the firm failed to make a $10 million payment that was due, triggering defaults across all of its debt within lending pools for the stablecoin USDC and wrapped ether (wETH). Maple said Orthogonal Trading had misrepresented its exposure to Sam Bankman-Fried’s collapsed FTX exchange.
Now, officials with Orthogonal Credit have come forward with a Medium post claiming they were kept out of the loop on the depth of Orthogonal Trading’s financial troubles and weren’t aware of the hole in the trading book. Orthogonal Credit, which oversaw a $30 million stablecoin lending pool named Orthogonal Trading - USDC001 on Maple, was also booted from Maple’s protocol.
“We are shocked and dismayed,” Orthogonal Credit said in the statement. “We are speechless by the extent of the exposure and liquidity position of Orthogonal Trading’s book of business.”