According 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 area in 2022. The crypto firm needed to halt withdrawals after shedding round $190 million to the Terra ecosystem’s crash.
Hodlnaut Says $30 Million Offer Has “Speculative Value”
According to 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 value.”
Meanwhile, many of the crypto lender’s collectors, who account for 60% of the full debt, supported this choice. In the report, Bloomberg alluded that the FLEX worth has declined by greater than 92% since OPNX made the acquisition bid in early August. According 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 currently, prompting its rise to $2.48 on Monday, September 18. However, the FLEX Coin has since undergone a major worth 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.
Other Reasons For Rejecting OPNX’s Takeover Bid
Besides the issues concerning the FLEX token and its “speculative value,” the Hodlnaut directors put ahead different questions on the OPNX’s $30 million supply. One of those points is the “no injection of cash or assets with similar liquidity.”
Bloomberg revealed that the directors implied liquid tokens resembling Bitcoin and Ether. The court-appointed interim managers additionally questioned the absence of “a timeline for repayment of creditors’ debt” and that there have been “no details of payment beyond 30% of liabilities.”
It is value 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 within the United States.
The Three Arrows Capital founders have additionally confronted troubles outdoors the United States, with the Monetary Authority of Singapore (MAS) just lately issuing a 9-year ban in opposition to them. This directive prohibits Davies and Zhu from participating in regulated enterprise actions within the Southeast Asian nation.
The cryptocurrency complete market cap on the day by day timeframe | Source: TOTAL chart on TradingView
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