A Hedge Fund Hit by FTX Collapse Defaults on $36 Million of Debt
- FTX collapse had a severe impact, Orthogonal Trading says
- Lenders alleged Orthogonal Trading misrepresented financials
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Contagion from the messy implosion of Sam Bankman-Fried’s crypto empire is spilling into the world of decentralized finance, after a hedge fund was declared in default on almost $36 million of loans.
Orthogonal Trading said in a tweet on Tuesday that it had been “severely impacted by the collapse of FTX and associated trading activities,” making it unable to repay on a $10 million crypto loan. That prompted the entity that runs the lending pool on DeFi protocol Maple to issue a notice of default for all the fund’s active borrowings.