In keeping with the most recent report, the interim judicial managers of beleaguered crypto lender Hodlnaut have rejected the most recent acquisition bid proposed by OPNX. The OPNX alternate, affiliated with the founders of collapsed hedge fund Three Arrows Capital (3AC), provided to purchase a important 75% possession stake in troubled Hodlnaut in August 2023.
Holdnaut, a Singapore-based crypto lender, was one other of the quite a few victims of the monetary disaster that rocked the crypto area in 2022. The crypto firm needed to halt withdrawals after dropping round $190 million to the Terra ecosystem’s crash.
Hodlnaut Says $30 Million Supply Has “Speculative Worth”
In keeping with a current court docket submitting reviewed by Bloomberg, Hodlnaut directors have opted out of the acquisition deal of the crypto lending agency, arguing that the $30 million supply of FLEX tokens is “illiquid” and has “speculative worth.”
In the meantime, many of the crypto lender’s collectors, who account for 60% of the entire debt, supported this choice. Within the report, Bloomberg alluded that the FLEX value has declined by greater than 92% since OPNX made the acquisition bid in early August. In keeping with CoinGecko information, the FLEX token was valued at roughly $7 on the time of the supply.
The cryptocurrency has been topic to excessive volatility currently, prompting its rise to $2.48 on Monday, September 18. Nonetheless, the FLEX Coin has since undergone a major value correction, with its present worth at $0.584586.
FLEX is the native cryptocurrency of the CoinFLEX alternate, which stopped withdrawals and filed for restructuring in June 2022. OPNX was launched by CoinFLEX founders Mark Lamb and Sudhu Arumugam, explaining the connection between the OPNX alternate and the FLEX token.
Different Causes For Rejecting OPNX’s Takeover Bid
Moreover the considerations concerning the FLEX token and its “speculative worth,” the Hodlnaut directors put ahead different questions on the OPNX’s $30 million supply. One in every of these points is the “no injection of money or property with comparable liquidity.”
Bloomberg revealed that the directors implied liquid tokens similar to Bitcoin and Ether. The court-appointed interim managers additionally questioned the absence of “a timeline for reimbursement of collectors’ debt” and that there have been “no particulars of fee past 30% of liabilities.”
It’s price noting that the involvement of the embattled Three Arrows Capital founders, Kyle Davies and Su Zhu, in OPNX’s takeover bid has at all times been a supply of fear. Davies and Zhu are in a authorized battle with 3AC collectors in the US.
The Three Arrows Capital founders have additionally confronted troubles outdoors the US, with the Financial Authority of Singapore (MAS) just lately issuing a 9-year ban in opposition to them. This directive prohibits Davies and Zhu from partaking in regulated enterprise actions within the Southeast Asian nation.
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