On September 19, 2023, financial journalist Suvashree Ghosh of Bloomberg revealed through a recent legal document that the interim judicial managers administering Hodlnaut are resistant to an acquisition by crypto entity OPNX. Hodlnaut is a cryptocurrency lending firm that suspended its withdrawal functions in August 2023 due to unfavorable market conditions and consequently entered judicial management for restructuring.
Financial records indicate a glaring deficit of approximately $193 million in Hodlnaut’s accounts. A sizable part of this deficit is attributable to the declining value of the cryptocurrency Terra. OPNX, a digital asset exchange that specializes in trading claims from insolvent cryptocurrency companies, was established by Kyle Davies and Su Zhu, who were also founders of the now-inoperative hedge fund, Three Arrows Capital. Ghosh’s Bloomberg article cited that the estate’s administrators assert that the interim judicial managers are skeptical about a proposed $30 million payment to be made in FLEX tokens, labeling it as “illiquid.”
Moreover, the legal document suggests that 60% of Hodlnaut’s creditors are against the acquisition proposal. Statements from Hodlnaut’s interim judicial managers and OPNX remain unavailable. It is worth noting that Davies and Zhu have been prohibited from engaging in any regulated financial activities in Singapore for a period of nine years. Furthermore, the Virtual Asset Regulatory Authority (VARA) of Dubai imposed a financial penalty on OPNX on August 16.
We invite readers to express their viewpoints and analyses on the contested acquisition of Hodlnaut by OPNX in the comments section below.
Frequently Asked Questions (FAQs) about Hodlnaut OPNX Takeover Opposition
What is the primary focus of the report?
The primary focus of the report is the opposition by Hodlnaut’s interim judicial managers and creditors to an acquisition attempt by the crypto firm OPNX.
Who reported the original information?
The original information was reported by Suvashree Ghosh of Bloomberg on September 19, 2023.
Why did Hodlnaut halt withdrawals in August 2023?
Hodlnaut halted withdrawals in August 2023 due to deteriorating market conditions. Shortly thereafter, the company sought judicial management to rehabilitate and restructure itself.
What financial difficulties is Hodlnaut facing?
Hodlnaut is facing a financial shortfall of about $193 million. A substantial part of this shortfall is due to the declining value of the cryptocurrency Terra.
Who are the founders of OPNX and what is their background?
OPNX was founded by Kyle Davies and Su Zhu, who were also the founders of the now-defunct hedge fund Three Arrows Capital.
What is the estate administrators’ viewpoint on the proposed $30 million payment in FLEX tokens?
According to the Bloomberg report, estate administrators allege that Hodlnaut’s interim judicial managers consider the proposed $30 million payment in FLEX tokens to be “illiquid.”
What percentage of Hodlnaut’s creditors oppose the OPNX deal?
According to the report, 60% of Hodlnaut’s creditors are against the acquisition proposal by OPNX.
Are there any regulatory actions against OPNX’s founders?
Yes, Kyle Davies and Su Zhu have been barred from participating in regulated financial activities in Singapore for nine years. Additionally, OPNX was fined by Dubai’s Virtual Asset Regulatory Authority (VARA) on August 16.
Have Hodlnaut’s interim judicial managers or OPNX commented on the situation?
As of the report’s publication, neither Hodlnaut’s interim judicial managers nor OPNX have issued any public statements or comments regarding the acquisition proposal or the opposition to it.
What is the significance of the Bloomberg report?
The Bloomberg report sheds light on the complex financial and legal challenges that Hodlnaut is facing, as well as detailing the opposition by the company’s judicial managers and creditors to an acquisition by OPNX. It offers a comprehensive insight into an unfolding story in the cryptocurrency sector.
More about Hodlnaut OPNX Takeover Opposition
- Bloomberg Original Report on Hodlnaut-OPNX Opposition
- Hodlnaut’s Official Statement on Halting Withdrawals
- Three Arrows Capital Background and History
- Details on FLEX Tokens
- Virtual Asset Regulatory Authority (VARA) of Dubai
- Singapore Financial Regulatory Actions
- Cryptocurrency Market Conditions
- Legal Documentation on Hodlnaut’s Judicial Management