Maple Finance Drops Orthogonal Trading Due to Fraud

Maple Finance sever all links with Orthogonal Trading
Orthogonal Trading suffers allegations of financial deception
On-chain lending infrastructure is one of Maple’s priorities

Following the demise of FTX, the blockchain-based institutional capital marketplace Maple Finance declared on December 5 that it will sever all links with Orthogonal Trading due to allegations of financial deception.

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According to Maple Finance, it severed all links with the trading company because, during the past four weeks, it misrepresented its finances and only revealed on December 3 that it could not satisfy loan repayments. This indicates that the corporation was running while practically insolvent, rendering it unable to continue operations without outside assistance.

Maple network stated:

Maple will not work with bad actors or with firms that misrepresent their financials or business operations. We are shocked and disappointed in the behavior of others and this is not a representation of how we do business.

Maple added that they will maintain their commitment to the community. “Maple is a technology and service provider. Maple is committed to providing on-chain lending infrastructure to improve capital markets, and will continue to provide this service.”

After detecting significant vulnerabilities in its due diligence, Orthogonal Credit revealed on November 9 that it would close Alameda Research’s Maple Finance dedicated borrower pool by the second quarter of 2022.

In other news, to adjust to the increasing demands for transparency, other platforms are now including proof of reserves in their data services. For example, on-chain data site Glassnode now aggregates all in one dashboard.

As per Glassnode, up to nine (9) exchanges have disclosed the addresses containing their proof of reserves. Namely, these are Binance, OKX (previously OKex), Crypto.com, Bitfinex, Bybit, BitMEX, KuCoin, and Deribit.

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José Gustavo

José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.