In line with the newest report, the interim judicial managers of beleaguered crypto lender Hodlnaut have rejected the newest acquisition bid proposed by OPNX. The OPNX alternate, affiliated with the founders of collapsed hedge fund Three Arrows Capital (3AC), supplied to purchase a significant 75% ownership stake in troubled Hodlnaut in August 2023.

Holdnaut, a Singapore-based crypto lender, was one other of the quite a few victims of the monetary disaster that rocked the crypto house in 2022. The crypto firm had to halt withdrawals after dropping round $190 million to the Terra ecosystem’s crash.

Hodlnaut Says $30 Million Provide Has “Speculative Worth”

In line with a latest court docket submitting reviewed by Bloomberg, Hodlnaut directors have opted out of the acquisition deal of the crypto lending agency, arguing that the $30 million supply of FLEX tokens is “illiquid” and has “speculative worth.”

In the meantime, many of the crypto lender’s collectors, who account for 60% of the entire debt, supported this choice. Within the report, Bloomberg alluded that the FLEX worth has declined by greater than 92% since OPNX made the acquisition bid in early August. In line with CoinGecko information, the FLEX token was valued at roughly $7 on the time of the supply. 

The cryptocurrency has been topic to excessive volatility recently, prompting its rise to $2.48 on Monday, September 18. Nonetheless, the FLEX Coin has since undergone a major worth correction, with its present worth at $0.584586.

FLEX is the native cryptocurrency of the CoinFLEX alternate, which stopped withdrawals and filed for restructuring in June 2022. OPNX was launched by CoinFLEX founders Mark Lamb and Sudhu Arumugam, explaining the connection between the OPNX alternate and the FLEX token.

Different Causes For Rejecting OPNX’s Takeover Bid

Moreover the considerations concerning the FLEX token and its “speculative worth,” the Hodlnaut directors put ahead different questions on the OPNX’s $30 million supply. One in every of these points is the “no injection of money or belongings with comparable liquidity.”

Bloomberg revealed that the directors implied liquid tokens corresponding to Bitcoin and Ether. The court-appointed interim managers additionally questioned the absence of “a timeline for compensation of collectors’ debt” and that there have been “no particulars of cost past 30% of liabilities.” 

It’s price noting that the involvement of the embattled Three Arrows Capital founders, Kyle Davies and Su Zhu, in OPNX’s takeover bid has at all times been a supply of fear. Davies and Zhu are in a authorized battle with 3AC collectors in the US.

The Three Arrows Capital founders have additionally confronted troubles exterior the US, with the Financial Authority of Singapore (MAS) recently issuing a 9-year ban in opposition to them. This directive prohibits Davies and Zhu from partaking in regulated enterprise actions within the Southeast Asian nation.

The cryptocurrency complete market cap on the day by day timeframe | Supply: TOTAL chart on TradingView

Featured picture from Medium, chart from TradingView