With the FTX going into bankruptcy, the overall ripple effect is seemingly carrying on, leaving its ugly mark and negative impact on all who are connected. In the latest case scenario, it happens to be Orthogonal Trading that has come under its adverse influence. For the uninitiated, this entity is a crypto trading company. Speculations are rife that it has of late gone insolvent, what with it not being in the position of paying up its due loan amount to the tune of $10 million.
However, this was to be made out to Maple Finance, which happens to be a DeFi protocol, actively engaged in the activities of uncollateralized borrowings. However, Orthogonal Trading has borrowed a huge amount from Maple Finance. They have borrowed from two M11-managed pools on Maple finance, owing $21M USDC, and 3,900 ETH, worth $4.9M as recorded on 5th December.
According to concerned and connected officials of Maple Finance and M11 Credit, the loan-providing company, Orthogonal Trading, had misappropriated the declaration of truth in matters about its financial health and condition. They also happen to be of the firm opinion that the company will not be in any position to honor the repayment of the loan amount.
However, they understand that Orthogonal had a significant amount of its assets on the FTX. Now, with the falling apart of the FTX itself, the scenario does not seem too encouraging for any return on loan. In their collective plan of action, they intend to recover as much of the loan amount as possible from the defaulter.