Nexus Mutual plans to divest and anticipates a $3 million loss with Maple Finance.

Nexus Mutual is seeking to exit the Maple Finance M11 Credit wETH pool, continuing the domino effect of companies embroiled in a crypto-lending liquidity crunch caused by the collapse of FTX.

Nexus currently expects to lose approximately $3 million from its investment with Maple Finance. The loss may have been mitigated as a result of Nexus’ deployment to the wETH pool. Investors in Maple’s USDC pool saw their funds depleted by up to 80%.

“Given the allegations of financial misrepresentation, we are extremely disappointed with Orthogonal Trading.” As a result, Nexus Mutual anticipates a loss on the Orthogonal loans of 2461 ETH (15.8% of our investment in Maple). “We support M11 Credit and Maple in taking appropriate legal action to maximize recovery,” Nexus Mutual said in a statement to The Block.

According to Etherscan records, Nexus is attempting to recover some 15,348 ETH that it previously deployed to the M11 wETH pool in order to see returns on its digital currency reserves.

“We have begun the process of withdrawing available funds.” A 10-day waiting period is required. “We anticipate recovering the majority of the capital invested in Maple,” Nexus said.

The M11 Credit arm of Maple Finance, which underwrites DeFi contracts and manages the protocol’s wrapped ETH, ran into trouble after it was revealed that Orthogonal Trading funds were tied up with FTX and that the company would default on $36 million in Maple Finance loans. Orthogonal’s default accounted for approximately 30% of all loans on Maple’s platform.

According to the company, Nexus Mutual’s daily operations and capacity to pay claims are unaffected by the Orthogonal nonpayment. “According to our current understanding,