FTX contagion spreads as hedge fund Orthogonal Trading defaults on $36m of debt
Orthogonal Trading has become the latest victim of the fallout from the sudden collapse Sam Bankman-Fried's crypto exchange FTX and trading house Alameda Research, with the cryptocurrency hedge fund having been declared in default on almost $36 million of loans, according to a report by Bloomberg.
The report cites a tweet by Orthogonal Trading on Tuesday saying that it had been “severely impacted by the collapse of FTX and associated trading activities,” making it unable to repay a $10 million crypto loan. M11 Credit, the entity that runs the lending pool on DeFi protocol Maple subsequently issued a notice of default for all of the fund’s active borrowings.
According to the report Maple has now severed ties with Sydney-based Orthogonal Trading because it misrepresented its financial position to the lending pool, M11 Credit, with M11 also making the same allegation against the hedge fund.