If the deal is approved, OPNX will invest $30 million in FLEX tokens into Hodlnaut.
In a significant development, Hodlnaut, a crypto lending entity facing bankruptcy, may have a potential investor.
According to the Bloomberg report shared on August 6th, Hodlnaut's alleged savior is the OPNX exchange. The news report indicates that OPNX expressed interest in purchasing 75% of Hodlnaut's operations.
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The proposed agreement involves OPNX investing about $30 million in FLEX tokens into Hodlnaut. This move is expected to alleviate some of the company's financial burdens, particularly concerning payouts to creditors.
Should the deal gain the creditor's approval, the company's investors could obtain 30% of their owed amounts in FLEX and other tokens or access up to 95% of Hodlnaut's available assets.
The potential deal, however, is not without its complications. In April, a significant number of Hodlnaut’s creditors had expressed a preference for liquidating the company. Documents from the interim judicial manager (IJM) highlighted that a majority of the creditors, with claims totaling about 228.3 million Singapore dollars (equivalent to $170 million), leaned towards liquidation rather than restructuring.
To provide context, FLEX is the primary token for the crypto exchange CoinFLEX. This platform was the brainchild of Mark Lamb and Sudhu Arumugam, who also co-founded OPNX. The exchange focuses on trading crypto claims and utilizes the FLEX token for its operations.
It is worth noting that other OPNX co-founders include Su Zhu and Kyle Davies, both associated with the now-defunct hedge fund Three Arrows Capital.
Hodlnaut suspended its withdrawal operations in August 2022 due to liquidity issues. At that time, the company sought protection under Singapore's judicial management laws, temporarily insulating them from legal repercussions.
As Hodlnaut navigates its financial challenges, the potential involvement of OPNX offers a glimpse of hope. The outcome will undoubtedly shape the future for both entities in the dynamic world of cryptocurrency.
