Key Points:

  • M11 Credit seeks the provisional liquidation.

  • The action was supposed to come after Orthogonal Trading defaulted on $36 million.

  • Maple Finance and M11 Credit are still working to collect debt.

Maple Finance and M11 Credit seeks the provisional liquidation during the recovery of $36 million in debt from crypto trading firm Orthogonal Trading.

As updated in previous Coincu News articles, Orthogonal Trading, which became insolvent following the sudden collapse of FTX, has been placed under temporary liquidation by the British Virgin Islands court, by another company.

Two Maple Finance M11 USDC funds have run out, according to information gathered by security risk monitor Beosin EagleEye from early warning and blocking platform monitoring by blockchain security auditing firm Beosin.

Although a significant portion of Maple Finance’s USDC pool has been withdrew in the recent month, according to M11Credit’s official statement, Orthogonal Trading’s bad debt actually had an impact on the entire pool.

Following Orthogonal Trading’s $36 million default on loans from lending pools operated by M11 Credit using the decentralized finance protocol Maple Finance earlier this month, the news was announced on Thursday by M11.

According to the tweet, M11 Credit and Maple requested a “urgent ex parte application” on December 15 in the British Virgin Islands High Court to appoint a provisional liquidator for Orthogonal Trading. According to M11, the request was approved.

The temporary liquidator has the right to liquidate to the extent necessary to maintain the value of the M11 Credit assets and the Maple Fund has taken this stepto protect the value of the property and seek maximum value for the lender.

M11 and the Maple Fund hired Kroll, an American corporate investigative and risk advisory firm, as a liquidator, and they will do their best to support Kroll’s work in identifying and recovering assets for creditors. The next step is for Kroll to begin investigating the assets and take control of the Orthogonal account.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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