Dutch crypto company loses FTX fortune and has been scammed twice

Dutch crypto company loses FTX fortune and has been scammed twice

The tsunami waves after the landslide of the bankrupt FTX are now also reaching our shores. A Dutch crypto investment firm also lost several million dollars in the scandal, albeit with some delay. However, Maven 11 did not have a penny on the Bitcoin trading platform.

The demise of FTX has been stirring the minds of the crypto world for some time now. Founder Sam Bankman-Fried not only ran off with the money from the celebrities who were taken in by his smooth talk.

Without having traded a single Bitcoin on FTX itself, it appears that the Dutch crypto company Maven 11 has also lost a fortune. How is that possible?

Maven lost 11 millions to crypto scam

The goal of the Dutch investment firm Maven 11 is actually twofold. Primarily, the company is specifically focused on investments in the world of blockchain and distributed ledger technology. On the other hand, its subsidiary M11 Credit also provides loans to other Bitcoin investment firms.

This includes Alameda Research, Sam Bankman-Fried’s beleaguered investment firm that is at the root of the entire FTX fiasco. When the fraud ball got rolling in early November, Maven 11 was quick to point out that Fried was no longer indebted to the Dutch crypto company.

In fact. Their analysis revealed months ago that the fallen FTX tycoon’s Bitcoin accounting had more than a few holes. And had Maven 11 bosses told their other clients about Bankman-Fried’s questionable finances, they might not have lost a fortune today.

FTX: the indirect cause

Two other investment firms that approached Maven 11 for a loan can no longer afford it because of their lost investment in FTX. Since most of the funds have disappeared from the crypto trading platform with the northern sun, the Dutch Bitcoin company will probably not receive a penny from the debtors.

There is still a hint of doubt about the reimbursement of Auros for the time being. After all, it is not yet clear whether Maven 11 will recover the loan of more than $ 10 million. But the chances seem slim. However, that amount is a piece of cake compared to the loan that the company provided to Orthogonal Trading.

In total, the US company was granted a loan of more than $30 million after claiming it was almost unaffected by the collapse of FTX. But in retrospect, it turns out that the figures had been tampered with.

Dutch company condemns state of affairs

“We are extremely shocked and disappointed by Orthogonal Trading’s actions. The intentional misrepresentation of information in the many contacts we have had over the past few weeks has seriously compromised our ability to manage our outstanding credit risk,” Maven 11 said in a statement. “We condemn this conduct, which is inconsistent with our way of doing business, and will focus all our efforts on recovering funds from now on.”

It is doubtful whether the funds can actually be recovered. In any case, it is a serious red line through Maven 11’s account. Last year, the Dutch Bitcoin company raised 100 million euros through an investment round. Almost half of that has now gone up in smoke indirectly thanks to FTX.

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Dutch crypto company loses FTX fortune and has been scammed twice