OPNX Exchange Bids For Crypto Lender In Singapore: Report
If the agreement is authorized, Hodlnaut will receive a capital infusion of almost $30 million in FLEX tokens to help settle creditors’ payouts and pending claims.
Hodlnaut, a cryptocurrency lender, looks to have secured a white knight investor to help it leave bankruptcy proceedings. According to Bloomberg, the OPNX exchange has offered to buy 75% of the company.
The agreement calls for a capital infusion of almost $30 million in FLEX tokens into Hodlnaut to help meet creditors’ payouts and pending claims. As of this writing, FLEX is trading at $7.16 on CoinMarketCap. A Singapore court is overseeing Hodlnaut’s restructuring.
If the creditors agree, OPNX will hold 75% of Hodlnaut after the capital infusion. According to documents obtained by Bloomberg, creditors would receive 30% of their claims in FLEX and other tokens, or a pro-rata payment of up to 95% of the available corporate asset pool, whichever is greater.
“We see a lot of potential in the Hodlnaut platform and look forward to working closer with them,” Lam said in an email to Bloomberg.
FLEX ticket performance. Source: CoinMarketCap.
The native coin of the CoinFLEX exchange is called FLEX. It was created by Mark Lamb and Sudhu Arumugam, who also co-founded OPNX, a new platform for exchanging cryptocurrency claims.
The FLEX coin also powers the platform. Su Zhu and Kyle Davies, who also started the insolvent hedge fund Three Arrows Capital (3AC), were additional co-founders of OPNX. The United States creditors are pursuing Zhu and Davies because their bankruptcy processes are taking so long.
If the creditors will accept, the arrangement is up in the air. Most of Hodlnaut’s creditors announced their willingness to liquidate the business in April.
As per the letter from the interim judicial manager (IJM), around 55.38% of creditors, whose claims amount to approximately 228.3 million Singapore dollars (equivalent to $170 million), have expressed their liquidation preference instead of restructuring. The letter said that no new capital source had been identified.
In August 2022, Hodlnaut stopped withdrawals due to a liquidity crisis. Since then, it has been protected from legal action by judicial management mandated by Singaporean law.
The company stated,
“We are aiming to avoid a forced liquidation of our assets as it […] will require us to sell our users’ cryptocurrencies such as BTC, ETH, and WBTC at these current depressed asset prices.”
