OPNX submits bid to takeover troubled Singapore-based crypto lender Hodlnaut

Open Exchange (OPNX), a level for crypto claims trading, has submitted an connection to instrumentality implicit troubled crypto lender Hodlnaut, Bloomberg reported connected August 6. Hodlnaut filed for bankruptcy extortion past August and its restructuring is present being supervised by a Singapore court.

The connection involves providing $30 cardinal worthy of FLEX tokens to Hodlnaut for a partial payout to creditors and to finalize claims, an unnamed root told Bloomberg. Open Exchange volition ain a 75% involvement successful Hodlnaut successful lieu of the superior injection.

FLEX is the autochthonal token of CoinFLEX exchange, whose founders Mark Lamb and Sudhu Arumugam started OPNX on with Kyle Davies and Su Zhu. Davies and Zhu are co-founders of the now-defunct crypto hedge money Three Arrows Capital. Lamb told Bloomberg:

“We spot a batch of imaginable successful the Hodlnaut level and look guardant to moving person with them.”

The interim judicial managers of Hodlnaut objected to the firm’s directors emailing the OPNX bid straight to users. Thereafter, OPNX submitted the bid successful court, though its chances of occurrence stay uncertain.

If Hodlnaut creditors o.k. Open Exchange’s offer, they would either person 30% of their claims successful the signifier of FLEX and different tokens oregon a pro-rata outgo of up to 95% of the full disposable firm plus pool, whichever is higher, arsenic per the word expanse viewed by Bloomberg.

The backstories

Hodlnaut was 1 of the galore lenders that froze idiosyncratic withdrawals aft facing fiscal trouble successful the aftermath of the Terra-LUNA collapse past year. Soon after, Hodlnaut filed for bankruptcy extortion and was enactment nether judicial management.

In January, large Hodlnaut creditors rejected a restructuring program and favored liquidating the lender, according to a Bloomberg report. However, Hodlnaut founders Simon Lee and Zhu Juntao convinced creditors that selling the steadfast would pb to a amended result for them compared to liquidation.

In April, Dubai authorities issued cease and desist notices to the founders of OPNX for violating section laws by promoting and operating an unlicensed exchange. Zhu and Davies person said that portion they helped motorboat the trading level for tokenized bankruptcy claims, they are not progressive successful the day-to-day management.

The liquidators of Three Arrows Capital assertion that Zhu and Davies person refused to cooperate with their investigation. The liquidators question to retrieve $1.3 cardinal from the duo.

The station OPNX submits bid to takeover troubled Singapore-based crypto lender Hodlnaut appeared archetypal connected CryptoSlate.