OPNX submits bid to takeover troubled Singapore-based crypto lender Hodlnaut

cyptouser7 months agoSpot Exchanges149

OPNX submits bid to takeover troubled Singapore-based crypto lender Hodlnaut

Open Exchange (OPNX), a platform for crypto claims trading, has submitted an offer to take over troubled crypto lender Hodlnaut, Bloomberg reported on August 6. Hodlnaut filed for bankruptcy protection last August and its restructuring is now being supervised by a Singapore court.

The offer involves providing $30 million worth of FLEX tokens to Hodlnaut for a partial payout to creditors and to finalize claims, an unnamed source told Bloomberg. Open Exchange will own a 75% stake in Hodlnaut in lieu of the capital injection.

FLEX is the native token of CoinFLEX exchange, whose founders Mark Lamb and Sudhu Arumugam started OPNX along with Kyle Davies and Su Zhu. Davies and Zhu are co-founders of the now-defunct crypto hedge fund Three Arrows Capital. Lamb told Bloomberg:

“We see a lot of potential in the Hodlnaut platform and look forward to working closer with them.”

The interim judicial managers of Hodlnaut objected to the firm’s directors emailing the OPNX bid directly to users. Thereafter, OPNX submitted the bid in court, although its chances of success remain uncertain.

If Hodlnaut creditors approve Open Exchange’s offer, they would either receive 30% of their claims in the form of FLEX and other tokens or a pro-rata payment of up to 95% of the total available corporate asset pool, whichever is higher, as per the term sheet viewed by Bloomberg.

The backstories

Hodlnaut was one of the many lenders that froze user withdrawals after facing financial difficulty in the aftermath of the Terra-LUNA collapse last year. Soon after, Hodlnaut filed for bankruptcy protection and was put under judicial management.

In January, major Hodlnaut creditors rejected a restructuring plan and favored liquidating the lender, according to a Bloomberg report. However, Hodlnaut founders Simon Lee and Zhu Juntao convinced creditors that selling the firm would lead to a better outcome for them compared to liquidation.

In April, Dubai authorities issued cease and desist notices to the founders of OPNX for violating local laws by promoting and operating an unlicensed exchange. Zhu and Davies have said that while they helped launch the trading platform for tokenized bankruptcy claims, they are not involved in the day-to-day management.

The liquidators of Three Arrows Capital claim that Zhu and Davies have refused to cooperate with their investigation. The liquidators seek to recover $1.3 billion from the duo.

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Bankrupt crypto giants FTX and Genesis reach agreement to resolve billion-dollar claims

Bankrupt crypto companies FTX and Genesis Global announced they had reached anagreement in principle...

Cybersecurity breach at Kroll leaks FTX, BlockFi bankruptcy claimants’ data

Bankruptcy claims agent Kroll has suffered a cybersecurity incident that compromised the personal in...

New Celsius 2.0 company board proposal released, led by former Algorand CEO

Bankrupt crypto lender Celsius has proposed the appointment of Algorand’s blockchain former chief ex...

DOJ accuses SBF of leaking Caroline Ellison’s private diary to taint trial; FTX sues former executiv

The U.S. Department of Justice (DOJ) alleged that Sam Bankman-Fried (SBF) released the pri...

US Bitcoin Corp to host 8,500 of Celsius’ mining rigs as part of asset management deal

Data center operator US Bitcoin Corp (USBTC) will host 8,500 Bitcoin (BTC) miners with an estim...

Celsius set to vote on asset sale plan after court approves disclosures

Celsius Network is set to vote on its plan to offload assets to the Fahrenheit consortium after secu...