Hodlnaut Managers Reject OPNX's Buyout Offer Amid FLEX Token Crash
Summary:
The provisional managers of failed crypto lender Hodlnaut have rejected a buyout deal from crypto exchange OPNX due to the offer consisting of illiquid Flex (FLEX) tokens, whose value has plummeted 90% since August 2023. This decision was supported by 60% of Hodlnaut's creditors. The managers also expressed concern about the lack of cash or major digital asset injections, and dissatisfaction with OPNX's lack of a repayment timeline for creditors. Coinflex, closely linked to OPNX, announced plans for a shutdown by October 31, 2023.
The provisional judicial managers of the defunct digital currency lender, Hodlnaut, have allegedly dismissed the most recent acquisition deal in light of the settlement token experiencing a 90% dive in value. These managers have taken a stand against the acquisition clause presented by the digital currency exchange platform, OPNX. This platform was started by Kyle Davies and Su Zhu, the originators of the unsuccessful hedge fund, Three Arrows Capital (3AC).
According to a recent legal document, these temporary managers have argued that the offered $30 million worth of Flex (FLEX) tokens are "illiquid" and hold only "theoretical value," as reported by Bloomberg on September 19. Almost two-thirds of Hodlnaut Group's creditors, accounting for 60% of the total outstanding debt, also rejected the OPNX agreement.
The managers cited a decline of approximately 90% in the value of FLEX since OPNX released a bid to acquire three-quarters of Hodlnaut in early August 2023. During the bid, FLEX was valued at around $7. As per CoinGecko's data, Flex Coin is currently available on the market at $0.58.
In addition to the issues regarding FLEX, the provisional judicial managers of Hodlnaut also expressed concerns about the lack of promising cash or asset injections, such as the prominent digital currencies like Bitcoin (BTC) or Ether (ETH). They were also dissatisfied with OPNX not presenting a repayment schedule for creditors’ debts and failing to provide any payment details for liabilities exceeding 30%.
Coinflex, a cryptocurrency exchange closely linked to the OPNX platform, features FLEX as its native token. The founders of this platform, Mark Lamb and Sudhu Arumugam, were participants in OPNX's launch.
Coinflex halted all fund withdrawals in June 2022, citing extreme market conditions and the ongoing ambiguity of a transaction partner. The exchange is now filing for restructuring through a Seychelles court in hopes of recuperating an $84 million deficit caused by a large individual customer. Coinflex announced plans to officially shut down operations by October 31, 2023 and advised all clients to withdraw their funds before the projected closure date.
Published At
9/19/2023 1:16:54 PM
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