OPNX offers lifeline to bankrupt lender Hodlnaut amidst liquidity crisis
- OPNX, an exchange backed by Three Arrows Capital, has offered to acquire bankrupt crypto lender Hodlnaut.
- OPNX to inject $30 million worth of FLEX digital tokens to facilitate a partial creditor payout.
OPNX, a digital-asset exchange backed by the founders of the now-defunct hedge fund Three Arrows Capital, has expressed interest in acquiring struggling crypto lender Hodlnaut.
Currently undergoing restructuring overseen by a Singapore court, Hodlnaut has received an offer from OPNX to inject approximately $30 million worth of FLEX digital tokens into the firm to facilitate a partial creditor payout for the finalization of claims, per a Bloomberg report.
A $30 Million token injection proposed
The bid, if accepted, would give OPNX 75% control in Hodlnaut. According to the term sheet gathered by Bloomberg News, creditors would have the choice of collecting 30% of their claims in FLEX and other tokens or a pro-rata payment of up to 95% of the entire available corporate asset pool, whichever is greater.
The CoinFLEX exchange’s creators, Mark Lamb and Sudhu Arumugam, created OPNX earlier this year. And FLEX is affiliated with this exchange.
Hodlnaut, headquartered in Singapore with operations in Hong Kong, was one of the market’s casualties during the crypto harsh winter. Last year, the business suspended withdrawals and entered a court-supervised restructuring process in Singapore. The firm additionally stated that it had withdrawn its regulatory licensing application in Singapore, prohibiting it from delivering token swap functionality.
Hodlnaut decided to suspend most of its social media accounts as part of its crisis response. Juntao Zhu, the founder, also made his Twitter account private. The suspension of services by Hodlnaut came amid a bigger crisis in the crypto financing business. This was precipitated by the failure of the Terra ecosystem and Three Arrows Capital.
Hodlnaut and its judicial managers were yet to react to queries regarding the OPNX offer. In April, the majority of Hodlnaut’s creditors stated the desire for the company to be liquidated rather than restructured.
Hodlnaut’s fate now hinges on the decision of its creditors, who have to evaluate the merits of the OPNX deal in order to retrieve their investments from the struggling crypto lender. In the broader context, the challenges faced by Hodlnaut underscore the need for robust risk management strategies and regulatory compliance in the crypto industry.