The interim judicial managers overseeing the affairs of Hodlnaut, the collapsed cryptocurrency lender, have reportedly turned down a recent buyout offer, primarily due to a substantial decline in the settlement token’s value. Hodlnaut administrators have expressed reservations about the acquisition conditions proposed by OPNX, a cryptocurrency exchange founded by Kyle Davies and Su Zhu, who are the co-founders of the failed hedge fund Three Arrows Capital (3AC).
In a recent legal filing, the interim managers argued that the $30 million offer made in Flex (FLEX) tokens is problematic because the tokens lack liquidity and have speculative value, as reported by Bloomberg on September 19. A significant majority of Hodlnaut Group’s creditors, accounting for 60% of the total debt, also voiced their opposition to the OPNX deal.
The administrators pointed out that the value of FLEX tokens has plummeted by approximately 90% since OPNX made the offer to acquire 75% of Hodlnaut in early August 2023. At the time of the proposal, FLEX was trading at around $7. According to data from CoinGecko, the current trading price of Flex Coin (FLEX) is $0.58 at the time of writing.
Hodlnaut Rejects OPNX’s Buyout Offer as Settlement Token’s Value Plummets
Aside from the concerns regarding FLEX tokens, Hodlnaut’s interim judicial managers expressed unease about the absence of an injection of cash or assets with similar liquidity, such as major digital assets like Bitcoin (BTC) or Ether (ETH). They were also dissatisfied with OPNX’s failure to provide a timeline for repaying creditors’ debt and the absence of details regarding payment beyond 30% of the outstanding liabilities.
FLEX serves as the native token of Coinflex, an exchange closely associated with the OPNX platform, as its founders, Mark Lamb and Sudhu Arumugam, were also involved in launching OPNX.
Coinflex suspended all withdrawals in June 2022, citing extreme market conditions and “continued uncertainty involving a counterparty.” The exchange filed for restructuring in a Seychelles court as it seeks to recover $84 million in losses from a large individual customer. Coinflex is set to officially cease operations on October 31, 2023, and it has advised its customers to withdraw all funds from the platform by that date.