Hodlnaut Rejects OPNX’s Acquisition Bid, Citing “Speculative Value” and Other Concerns
In the latest development surrounding troubled crypto lender Hodlnaut, the interim judicial managers have rejected the acquisition bid proposed by OPNX. OPNX, an exchange affiliated with the founders of collapsed hedge fund Three Arrows Capital (3AC), had offered to purchase a significant 75% ownership stake in Hodlnaut in August 2023.
Hodlnaut, a Singapore-based crypto lender, was one of the many victims of the financial crisis that shook the crypto space in 2022. The company had to halt customer withdrawals after losing approximately $190 million due to the Terra ecosystem’s crash.
According to a recent court filing reviewed by Bloomberg, Hodlnaut administrators have opted out of the acquisition deal, arguing that the $30 million offer of FLEX tokens has “speculative value” and is “illiquid.” This decision is supported by the majority of the crypto lender’s creditors, who account for 60% of the total debt. Bloomberg reports that the FLEX token’s price has declined by over 92% since OPNX made the acquisition bid in early August. At the time of the offer, the FLEX token was valued at around $7.
The FLEX token has experienced extreme volatility recently, reaching a high of $2.48 on September 18. However, it has since undergone a significant price correction, with its current value at $0.584586.
The native cryptocurrency of the CoinFLEX exchange, FLEX, is connected to OPNX. CoinFLEX, which stopped withdrawals and filed for restructuring in June 2022, was founded by Mark Lamb and Sudhu Arumugam, who also launched OPNX.
Apart from concerns about the FLEX token’s speculative value, Hodlnaut administrators have raised other questions regarding OPNX’s $30 million offer. They have questioned the absence of cash injection or assets with similar liquidity, as well as the lack of a timeline for repayment of creditors’ debt and details of payment beyond 30% of liabilities.
It is worth noting that the involvement of Three Arrows Capital founders, Kyle Davies and Su Zhu, in OPNX’s takeover bid has raised concerns. Davies and Zhu are currently in a legal battle with 3AC creditors in the United States. They have also faced troubles outside the United States, with the Monetary Authority of Singapore (MAS) recently imposing a 9-year ban against them, prohibiting them from engaging in regulated business activities in the Southeast Asian country.
As Hodlnaut continues to navigate its financial challenges, the rejection of OPNX’s acquisition bid highlights the company’s cautious approach towards potential solutions. The future of the beleaguered crypto lender remains uncertain as it seeks to address its debts and rebuild its reputation in the industry.
– [Bitcoinist: OPNX as Potential Savior for Hodlnaut](https://bitcoinist.com/opnx-as-potential-savior-for-hodlnaut/amp/)
– [Bitcoinist: Hodlnaut Halts Customer Withdrawals](https://bitcoinist.com/hodlnaut-halts-customer-withdrawals/amp/)
– [Bloomberg: OPNX’s $30 Million Crypto Bid for Hodlnaut Rebuffed Due to Illiquid FLEX Token](https://www.bloomberg.com/news/articles/2023-09-19/opnx-s-30-million-crypto-bid-for-hodlnaut-rebuffed-due-to-illiquid-flex-token)
– [Bitcoinist: 3AC Founders in Trouble as Regulator Imposes 9-Year Ban](https://bitcoinist.com/3ac-founders-trouble-as-regulator-impose-9-year-ban/amp/)
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