Orthogonal Credit, a representative of Maple Finance’s lending pools, reportedly stated in a report that the company opted “early this year” not to lend to Alameda Research, FTX’s quantitative trading subsidiary. By exercising due diligence, Orthogonal discovered several major flaws related to Alameda.

According to a tweet from Orthogonal Credit, the company discovered a few flaws related to Alameda Research. The representative of Maple Finance’s lending pools has no Alameda exposure and has not underwritten a loan to Alameda since Feb 22.

These claimed defects, in Orthogonal’s view, pertain to Alameda’s business activities, the quality of the assets it reported having on its balance sheet, and the company’s organizational structure. These factors led Orthogonal to decide to sever its lending ties to Alameda.

Following a flurry of businesses emphasizing to the public that they had no substantial exposure to FTX, Orthogonal provided their testimony. The Maple Finance lending pool delegate concluded that the company has an enduring commitment to cryptocurrency as an asset class, which is crucial in times of uncertainty, and that a proactive and scientific approach to risk is equally important.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Alameda Research

FTX

Maple Finance

Orthogonal Credit

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Related Posts

• Fed Interest Rates Cut Makes Crypto Markets Excited Again
• deUSD RWA Institutional Program Launched to Promote Liquidity for BUIDL
• Bitcoin Spot ETF Outflows Hit $401M Despite BlackRock Inflows
• Former Alameda CEO Will Now Serve 2-Year Sentence
• Bitcoin Reserve Strategy Expected to Be Approved in Trump’s First 100 Days
• Bitcoin Spot ETF Inflows Drop to Weekly Low of $32 Million
• Candidates for SEC Chair Being Considered Carefully for New Policy
• Former SEC Chair Appointed to New Critical Role, Not Head of SEC

News

Lending Representative On Maple Finance Decision To Not Lend To Alameda

Orthogonal Credit, a representative of Maple Finance’s lending pools, reportedly stated in a report that the company opted “early this year” not to lend to Alameda Research, FTX’s quantitative trading subsidiary. By exercising due diligence, Orthogonal discovered several major flaws related to Alameda.

According to a tweet from Orthogonal Credit, the company discovered a few flaws related to Alameda Research. The representative of Maple Finance’s lending pools has no Alameda exposure and has not underwritten a loan to Alameda since Feb 22.

During our Alameda due diligence earlier this year, the team identified a number of key weaknesses: a) declining asset quality, b) unclear capital policy, c) less than robust operational and business practices, and d) an increasingly byzantine corporate structure. (3/x)

— Orthogonal Credit (@OrthoCredit) November 9, 2022

These claimed defects, in Orthogonal’s view, pertain to Alameda’s business activities, the quality of the assets it reported having on its balance sheet, and the company’s organizational structure. These factors led Orthogonal to decide to sever its lending ties to Alameda.

Following a flurry of businesses emphasizing to the public that they had no substantial exposure to FTX, Orthogonal provided their testimony. The Maple Finance lending pool delegate concluded that the company has an enduring commitment to cryptocurrency as an asset class, which is crucial in times of uncertainty, and that a proactive and scientific approach to risk is equally important.

We considered these key weaknesses and made a commercial decision to sever our institutional lending relationship. Not a decision we took lightly but a necessary part of proactive risk management. (4/x)

— Orthogonal Credit (@OrthoCredit) November 9, 2022

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Other Posts

Related Posts

[tptn_list limit="8" title_length="0" heading="0" show_date="0" daily="1"]