Mutual, orthogonal trading, m11 credit, maple finance, blockfi, gemini, and genesis were all involved in the collapse of sam bankman-fried’s crypto empire last month. nexus mutual revealed roughly $3 million in losses due to the collapse, while orthogonal trading defaulted on its loans, with the majority of its loans being in m11 credit’s usdc pool and another $5 million in m11’s weth pool. allegations that orthogonal trading misrepresented its exposure to ftx are unusual.
Collapse occurred in august, when nexus mutual voted to move 15,384 ethereum into m11 credit’s lending pool. the loan defaults were in m11 credit’s usdc pool and m11’s weth pool. maple finance is a lending platform that allows firms like m11 credit to allocate capital and spin up their own lending facility.
Trading had direct exposure to ftx, and was working with a potential strategic investor to cover its liabilities, but was unable to match the timing of any fresh funding with the repayment date. maple finance noted that orthogonal trading had been operating while effectively insolvent. nexus mutual initiated the 10-day waiting period to withdraw funds from m11 credit’s lending pool, and will suffer losses of 1.5% to 2.6% of its assets, but it will not affect its day-to-day operations.