M11 Credit has reopened lending and is raising fresh capital for its new crypto lending pool on blockchain-based credit marketplace Maple Finance, the firm tweeted Wednesday.

It also appointed a new head of credit and has upgraded its risk management and credit underwriting process, a Maple blog post said.

The new developments came after pools managed by M11 Credit suffered $36 million of defaults, other loans missed payment and it restructure following the collapse of crypto exchange FTX in November. While some crypto watchers saw FTX’s sudden implosion as a black swan event, the subsequent contagion to trading firms and lenders highlighted crypto lending’s deficiencies in risk management and credit underwriting.

Notably, Orthogonal Trading, one of the largest borrowers of M11 pools, allegedly misled M11 and Maple by misrepresenting its financials and losses from FTX. Subsequently, investors in the affected pools faced up to 80% losses on their deposits.

(By Krisztian Sandor)