The interim judicial managers of Hodlnaut, the collapsed cryptocurrency lender, have reportedly rejected the latest buyout deal due to the significant drop in the value of the settlement token. Hodlnaut administrators have opposed the takeover terms proposed by cryptocurrency exchange OPNX, which was founded by Kyle Davies and Su Zhu, the co-founders of failed hedge fund Three Arrows Capital (3AC).
According to a recent court filing, the interim managers have argued that the offer of Flex (FLEX) tokens worth $30 million is considered “illiquid” and has “speculative value”. Bloomberg reported on September 19th that a majority of Hodlnaut Group’s creditors, accounting for 60% of the total debt, have also opposed the deal with OPNX.
The administrators pointed out that the value of Flex (FLEX) has plummeted approximately 90% since OPNX made the offer to take over 75% of Hodlnaut in early August 2023. Back then, FLEX was trading at around $7. However, according to data from CoinGecko, the Flex Coin is currently trading at $0.58.
One of the concerns raised by Hodlnaut’s interim judicial managers is the absence of cash injection or assets with similar liquidity, such as Bitcoin (BTC) or Ether (ETH). They also expressed dissatisfaction with OPNX for not providing a timeline for the repayment of creditors’ debt and for failing to provide details of payment beyond 30% of liabilities.
FLEX is the native token of Coinflex exchange, which is closely related to the OPNX platform, as its founders Mark Lamb and Sudhu Arumugam also participated in the OPNX launch. Coinflex suspended all withdrawals in June 2022 and filed for restructuring in a Seychelles court to recover $84 million in losses from a large individual customer. The exchange is expected to officially cease operations on October 31, 2023, advising its customers to withdraw all funds from the platform before the shutdown date.
It is worth noting that the Hodlnaut administrators are concerned about the viability and terms of the proposed buyout deal with OPNX, given the significant decline in the value of Flex (FLEX) tokens and the lack of clear repayment plans for creditors. This rejection adds to the challenges faced by Hodlnaut in its bid to resolve its financial troubles.
Disclaimer: This article is for informational purposes only. It is not an endorsement or investment advice. The author and publication do not hold any responsibility for your personal financial decisions.
Sources:
– [Bloomberg](https://www.bloomberg.com/news/articles/2023-09-19/opnx-s-30-million-crypto-bid-for-hodlnaut-rebuffed-due-to-illiquid-flex-token)
– [CoinGecko](https://www.coingecko.com/en/coins/flex-coin)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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