Melbourne-based crypto start-up Maple Finance has severed ties with crypto hedge fund Orthogonal Trading, alleging the firm has defaulted on $US35 million in loan repayments and has been trading insolvent after theOrthogonal Trading’s financial woes are causing headaches for another Australian-founded crypto business called Nexus Mutual, which offers peer-to-peer insurance services, and had lent money through a borrowing and lending pool run by Maple Finance’s technology.
Maple and the third-party “owners” of the pools perform their own due diligence on participants, but the platform does not require the borrower to pledge any assets against the debt that could be automatically liquidated if a default occurs. But after several weeks when Orthogonal executives insisted they had limited exposure to FTX, they have now admitted they had a much larger position in FTX, and its collapse is the main reason for their insolvency.
Nexus Mutual said in a statement it would start to withdraw its money from the Maple pool, but warned further funds might be tied up in other loans. Maple has a 10-day waiting period before depositors can withdraw capital.Earlier this year, Maple’s chief executive, Sidney Powell, knocked back FTX founder Sam Bankman-Fried’s sisterfrom participating on its platform, pointing to problems with Alameda’s balance sheet.
This is far from over. The dominos in this unregulated and fraudulent space are just beginning to fall. Wait until the SEC declares that crypto tokens are actually securities, needing to be registered with the SEC and regulated. Price of these digital tulips then goes to ZERO.
the look on that smarmy gits face says it all.....avoid
Shouldn’t that story be between the cartoons 🤡 & the horse racing 🏇 pages? Crypto isn’t about finance it’s just a big Ponzi circus 🎪.