Crypto lender Hodlnaut has reportedly received a lifeline from OPNX exchange, which has offered to acquire 75% of the company. The deal, if approved by the creditors, would involve an injection of approximately $30 million worth of FLEX tokens into Hodlnaut to partially cover outstanding claims. FLEX tokens are currently trading at $7.16, according to CoinMarketCap. The restructuring of Hodlnaut is being overseen by a Singapore court.
Under the proposed deal, OPNX would become the majority owner of Hodlnaut after the capital infusion. Creditors would receive 30% of their claims in FLEX tokens and other digital assets or a pro-rata payment of up to 95% of the available company asset pool, depending on which option is higher. This information was revealed in documents obtained by Bloomberg.
FLEX tokens belong to CoinFLEX, an exchange established by Mark Lamb and Sudhu Arumugam, who are also co-founders of OPNX. The FLEX token powers the OPNX platform, a marketplace for cryptocurrency claims trading. Other co-founders of OPNX include Su Zhu and Kyle Davies, who are also founders of the bankrupt hedge fund Three Arrows Capital (3AC). Notably, Zhu and Davies are currently facing legal action from creditors in the United States regarding their ongoing bankruptcy proceedings.
It remains uncertain whether the creditors will accept the proposed deal. In April, the majority of Hodlnaut’s creditors expressed their preference for liquidating the company over restructuring. According to a letter from the interim judicial manager (IJM), approximately 55.38% of creditors, representing claims of SGD 228.3 million (around $170 million), favored liquidation at that time. The letter stated that no new source of capital had been identified.
Mark Lamb expressed optimism about the potential of the Hodlnaut platform, saying, “We see a lot of potential in the Hodlnaut platform and look forward to working closer with them,” in an email to Bloomberg.
Hodlnaut encountered withdrawal issues in August 2022 due to a liquidity crisis, prompting the suspension of its services. Since then, the company has been under judicial management according to Singaporean law, providing temporary protection against legal actions. The company emphasized its aim to avoid forced liquidation, which would involve selling users’ cryptocurrencies such as BTC, ETH, and WBTC at current depressed prices.
In conclusion, Hodlnaut’s future is now reliant on the approval of its creditors to accept the offer presented by OPNX exchange. If the deal goes through, it would provide a much-needed capital injection and potentially secure the company’s recovery from its recent liquidity crisis.
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