- Open Exchange (OPNX) has submitted a takeover bid for bankrupt Hodlnaut, Bloomberg has learned.
- Investors will set aside $30 million in FLEX tokens to pay creditors.
- If the bid is approved, the company will own 75 percent of Hodlnaut.
Crypto exchange OPNX intends to acquire the assets of lender Hodlnaut. This was reported by Bloomberg.
The publication has learned that trading platform OPNX, owned by Three Arrows Capital hedge fund founders Kyle Davis and Su Zhu, wants to provide $30 million worth of FLEX tokens to Hodlnaut. The funds will be used to repay creditors and finalize claims, according to the media outlet.
The publication clarified that if approved, OPNX will own 75 percent of Hodlnaut without an equity infusion.
FLEX is a proprietary token of the CoinFLEX exchange, whose owners, Mark Lamb and Sudhu Arumugam, were heavily involved in the launch of OPNX along with Kyle Davis and Soo Joo. Lamb outlined plans related to the purchase of the bankrupt firm:
“We see great potential in Hodlnaut’s platform and look forward to working more closely with them.”
It has been reported that if Hodlnaut’s creditors approve Open Exchange’s proposal, they will either receive 30% of their claims in FLEX and other tokens, or a pro-rata payment of up to 95% of the total available pool of corporate assets.
At the time of writing, the market capitalization of the FLEX token exceeded $663 million and the current price is $6.72, according to Coinmarketcap.
Singapore-based cryptolending platform Hodlnaut suspended deposits and withdrawals on August 8, 2022. Its representatives went to court to defend themselves against creditors. Terra’s bankruptcy caused the cryptocurrency lender to lose about $190 million.
Cryptocurrency lender Terra’s bankruptcy caused Terra to lose about $190 million.