The OPNX cryptocurrency exchange, spearheaded by the creators of the collapsed hedge fund Three Arrows Capital, has submitted a bid to acquire struggling crypto lender Hodlnaut. The Singapore-based crypto lender has been navigating through a period of restructuring under the jurisdiction of a Singapore court.
OPNX EXchange Proposes $30 Million in FLEX Tokens
According to an August 6 Bloomberg report, OPNX has proposed a substantial infusion of $30 million worth of FLEX digital tokens into Hodlnaut. This financial boost aims to facilitate a partial payout to creditors, thereby concluding the lingering claims associated with Hodlnaut’s financial predicament.
The information was reportedly disclosed by insiders, and a term sheet obtained by Bloomberg News backs up these claims.
The driving force behind this proposal is the founders of CoinFlex, Mark Lamb and Sudhu Arumugam, who embarked on their latest venture with the inception of OPNX earlier this year. CinFlex’s native token, the FLEX token, which has a market valuation of approximately $661 million, saw a 10.23% decline to $6.7 over the last 24 hours.
Crucial Terms of the Proposal
If the bid by the OPNX exchange obtains the green light from the creditors, it would result in OPNX owning a substantial 75% stake in Hodlnaut. The proposal suggests that creditors, in return, could potentially receive 30% of their claims through FLEX and other tokens.
Alternatively, they might opt for a pro-rata payout of up to 95% from the entire available corporate asset pool, as outlined in the official documents Bloomberg News claims to have seen.
Commenting on the potential acquisition, Mark Lamb, one of the co-founders of the OPNX Exchange, expressed optimism about the future of Hodlnaut.
“We see a lot of potential in the Hodlnaut platform and look forward to working closer with them,” he stressed, radiating hope for a successful resolution.
If approved, the proposed investment—a capital injection of nearly $30 million in Flex tokens is intended to alleviate the financial woes and cater to outstanding claims faced by Hodlnaut.
It remains uncertain whether Hodlnaut’s creditors will endorse this proposition. A significant portion of Hodlnaut’s creditors had earlier signaled a preference for liquidation over restructuring. This comes after Hodlnaut was forced to halt withdrawals due to a liquidity crisis last year. The company subsequently entered judicial management under Singaporean law to safeguard its assets.
