Maple Finance halted Alameda loans in May after seeing 'key weaknesses'
Orthogonal Credit, a delegate firm that manages lending pools on Maple Finance, said that earlier this year, it made a decision to not lend to Alameda Research, FTX exchange's sister trading firm that's now reeling under a liquidity crisis. After Orthogonal did its diligence in risk management, it spotted certain "weaknesses" in Alameda ahead of its ongoing crisis.
Orthogonal had previously issued $288 million in loans with a specific pool dedicated to Alameda which started in November 2021 and closed in May 2022. In another pool called USDC01, Orthogonal hasn't underwritten a loan to Alameda since February 2022. These so-called weaknesses relate to Alameda's business practices, the quality of assets it held on its balance sheet as well as the corporate structure of the firm, Orthogonal said.
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