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Maple Finance Lending Pool Delegate ‘Identified a Number of Key Weaknesses’ Tied to FTX’s Alameda Research

News Feed - 2022-11-10 05:11:09

Maple Finance Lending Pool Delegate "Identified a Number of Key Weaknesses" Tied to FTX"s Alameda Research


According to a report from Orthogonal Credit, a delegate of Maple Finance’s lending pools, the firm decided “earlier this year” not to lend to Alameda Research, FTX’s quantitative trading firm. Orthogonal said through “due diligence” it “identified a number of key weaknesses” associated with Alameda. Orthogonal Credit Found ‘Key Weaknesses’ Tied to FTX’s Alameda Research Earlier This Year


A Twitter thread published by Orthogonal Credit explains that the firm identified a few weaknesses tied to Alameda Research. The Twitter revelation is explained in a tweetthat details Orthogonal Credit, a delegate of Maple Finance’s lending pools, has “no Alameda exposure and have not underwritten a loan to Alameda since Feb ’22.”


Orthogonal then detailed that the firm “actively pushed to close the Alameda dedicated borrower pool on [Maple Finance] during 2Q22.” The firm said that the Orthogonal team discovered issues related to FTX’s quantitative trading firm.


“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,” Orthogonal told the public. The Maple Finance lending pool delegate further added: 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.


Orthogonal’s testimony follows a slew of companies stressing to the public that they had no material exposure to FTX. The Maple Finance lending pool delegate concluded that the firm has an “unwavering commitment to crypto as an asset class is important during uncertain times; and equally critical is a proactive and methodical approach to risk.”


In addition to Orthogonal’s account of the situation, the digital currency market maker Wintermute said it had funds locked on FTX. “We do have remaining funds on FTX, and while this is not ideal, the amount is within our risk tolerances and does not have a significant impact on our overall financial position,” Wintermute detailed. “As a market neutral trading firm, we do not have any directional exposure to FTT tokens or related ecosystem assets,” the firm added. Tags in this story alameda, Alameda Research, Binance, Binance FTX, Exposure, FTT tokens, FTX Alameda, FTX Alameda Research, FTX Binance, FTX Exposure, lending pools, Maple, Maple Finance, Orthogonal Credit, quantitative trading firm, troubled FTX, Wintermute


What do you think about Orthogonal Credit’s testimony concerning FTX exposure and finding risks associated with FTX’s quantitative trading firm Alameda Research? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Galaxy Digital Reveals Update on Ties to FTX, Partnership Has "Exposure of Approximately $76.8 Million" NEWS | 5 mins ago Amid the FTX Confusion, Whistleblower Edward Snowden Says "Custodial Exchanges Were a Mistake" NEWS | 1 hour ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBinance CEO Explains Situation With FTX — Says ‘We Did Not Master Plan This’ Next articleBinance Backs out of FTX Deal Citing ‘Due Diligence,’ Reports of ‘Mishandled Customer Funds’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItToday"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits


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