{"id":14381,"date":"2022-11-09T20:33:46","date_gmt":"2022-11-09T20:33:46","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/maple-finance-lending-pool-delegate-identified-a-number-of-key-weaknesses-tied-to-ftxs-alameda-research-bitcoin-news\/"},"modified":"2022-11-09T20:33:46","modified_gmt":"2022-11-09T20:33:46","slug":"maple-finance-lending-pool-delegate-identified-a-number-of-key-weaknesses-tied-to-ftxs-alameda-research-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/maple-finance-lending-pool-delegate-identified-a-number-of-key-weaknesses-tied-to-ftxs-alameda-research-bitcoin-news\/","title":{"rendered":"Maple Finance Lending Pool Delegate ‘Identified a Number of Key Weaknesses’ Tied to FTX’s Alameda Research \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to a report from Orthogonal Credit, a delegate of Maple Finance\u2019s lending pools, the firm decided \u201cearlier this year\u201d not to lend to Alameda Research, FTX\u2019s quantitative trading firm. Orthogonal said through \u201cdue diligence\u201d it \u201cidentified a number of key weaknesses\u201d associated with Alameda.<\/strong><\/p>\n

Orthogonal Credit Found \u2018Key Weaknesses\u2019 Tied to FTX\u2019s Alameda Research Earlier This Year<\/h2>\n

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 tweet <\/a>that details Orthogonal Credit, a delegate of Maple Finance\u2019s lending pools, has \u201cno Alameda exposure and have not underwritten a loan to Alameda since Feb \u201922.\u201d<\/p>\n

Orthogonal then detailed that the firm \u201cactively pushed to close the Alameda dedicated borrower pool on [Maple Finance] during 2Q22.\u201d The firm said that the Orthogonal team discovered issues related to FTX\u2019s quantitative trading firm.<\/p>\n

\u201cDuring 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,\u201d Orthogonal told<\/a> the public. The Maple Finance lending pool delegate further added:<\/p>\n

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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.<\/p>\n<\/blockquote>\n

Orthogonal\u2019s testimony follows a slew of companies stressing to the public<\/a> that they had no material exposure to FTX. The Maple Finance lending pool delegate concluded that the firm has an \u201cunwavering commitment to crypto as an asset class is important during uncertain times; and equally critical is a proactive and methodical approach to risk.\u201d<\/p>\n

In addition to Orthogonal\u2019s account of the situation, the digital currency market maker Wintermute said<\/a> it had funds locked on FTX. \u201cWe 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,\u201d Wintermute detailed. \u201cAs a market neutral trading firm, we do not have any directional exposure to FTT tokens or related ecosystem assets,\u201d the firm added<\/a>.<\/p>\n

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alameda<\/a>, Alameda Research<\/a>, Binance<\/a>, Binance FTX<\/a>, Exposure<\/a>, FTT tokens<\/a>, FTX Alameda<\/a>, FTX Alameda Research<\/a>, FTX Binance<\/a>, FTX Exposure<\/a>, lending pools<\/a>, Maple<\/a>, Maple Finance<\/a>, Orthogonal Credit<\/a>, quantitative trading firm<\/a>, troubled FTX<\/a>, Wintermute<\/a><\/div>\n<\/div>\n

What do you think about Orthogonal Credit\u2019s testimony concerning FTX exposure and finding risks associated with FTX\u2019s quantitative trading firm Alameda Research? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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