Maple Finance, a DeFi lending platform, has severed ties with crypto firm Orthogonal Trading after the latter allegedly misrepresented “its financial position.” M11 Credit, a Maple Finance pool delegate, issued a default notice to Orthogonal Trading yesterday, claiming that the company owes $31 million in debts and is unable to repay them. In this case, Maple has stepped in because it suspects Orthogonal Trading’s financial situation has been misrepresented. Both M11 and Maple claim that Orthogonal misrepresented the scope of its liabilities. According to M11, Orthogonal Trading only disclosed a limited exposure to FTX, but it wasn’t until this weekend that the trading firm informed M11 and Maple Finance that its losses were much larger than previously disclosed.
