In response to the newest report, the interim judicial managers of beleaguered crypto lender Hodlnaut have rejected the newest acquisition bid proposed by OPNX. The OPNX change, affiliated with the founders of collapsed hedge fund Three Arrows Capital (3AC), supplied 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 house in 2022. The crypto firm needed to halt withdrawals after dropping round $190 million to the Terra ecosystem’s crash.
Hodlnaut Says $30 Million Provide Has “Speculative Worth”
In response to a latest 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, a lot of the crypto lender’s collectors, who account for 60% of the whole 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 response to CoinGecko knowledge, the FLEX token was valued at roughly $7 on the time of the supply.
The cryptocurrency has been topic to excessive volatility these days, prompting its rise to $2.48 on Monday, September 18. Nonetheless, the FLEX Coin has since undergone a big value correction, with its present worth at $0.584586.
FLEX is the native cryptocurrency of the CoinFLEX change, 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 change and the FLEX token.
Different Causes For Rejecting OPNX’s Takeover Bid
Moreover the considerations in regards to the FLEX token and its “speculative worth,” the Hodlnaut directors put ahead different questions on the OPNX’s $30 million supply. Considered one of these points is the “no injection of money or property with related liquidity.”
Bloomberg revealed that the directors implied liquid tokens equivalent to Bitcoin and Ether. The court-appointed interim managers additionally questioned the absence of “a timeline for compensation 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 USA.
The Three Arrows Capital founders have additionally confronted troubles exterior the USA, with the Financial Authority of Singapore (MAS) 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.
The cryptocurrency complete market cap on the every day timeframe | Supply: TOTAL chart on TradingView
Featured picture from Medium, chart from TradingView
