Maple Finance's token, Maple (MPL), plummeted on Monday following the revelation that Orthogonal Trading defaulted on $36 million of loans on the crypto lending protocol.

Orthogonal Trading interacted with Maple Finance through its credit arm as a delegate and through its trading arm as a borrower in order to access credit. As a delegate, its credit arm processed due diligence for investors looking to access the permissioned protocol. The USDC lending pool it ran originated $850 million in loans — with a default rate of 1.2%.

The trading arm did not access any loans in the pool run by its credit arm.

The MPL token was trading at $5.29 at 1 p.m. EST, according to data from CoinGecko. The token, built on the Ethereum network, has fallen 24.7% in the past 24 hours. 

MPLUSD chart by TradingView

Orthogonal Trading defaulted on $36 million, representing about 30% of active loans across the entire protocol. The crypto hedge fund recently had its funds tied up on FTX following the exchange's bankruptcy filing. 

Today's news is just the latest contagion linked to FTX's bankruptcy. On Nov. 28, BlockFi filed for Chapter 11 bankruptcy protection. FTX.US is a creditor in the filings, with the centralized crypto lender owing it $275 million, which appears to be linked to a credit line from the summer. 

According to a statement, Maple Finance has severed all ties with Orthogonal Trading, the parent entity that runs both a crypto hedge fund and a credit business.

The crypto lending protocol will remove Orthogonal Trading as a borrower on the platform and Orthogonal Credit as a delegate and shut down its lending pools.