Hodlnaut Rejects OPNX’s $30 Million Token Offer in Takeover Bid

• The judicial managers of Hodlnaut rejected OPNX’s takeover bid.
• OPNX has offered $30 million in FLEX tokens, which are seen as illiquid and have speculative value.
• Reasons for rejection included no timeline for repayment of creditors’ debt.

The interim judicial managers of Hodlnaut, the embattled crypto lender, have opposed the proposed terms of a takeover bid made by OPNX, a digital asset exchange platform. OPNX was created by the founders of Three Arrows Capital, a failed hedge fund.

OPNX has offered a $30 million capital injection in FLEX digital tokens, after which the exchange would own 75% of Hodlnaut. Furthermore, if the proposal is approved, creditors will receive 30% of their claims in FLEX and other tokens.

According to a court filing, the judicial managers described the $30 million offer of FLEX digital tokens as “illiquid” and with “speculative value.” Moreover, the majority of Hodlnaut Group’s creditors, who account for 60% of the total debt amount, were against OPNX’s offer.

Administrators’ concerns included no injection of cash or assets with similar liquidity. Bloomberg shared that this implied liquid tokens such as Bitcoin or Ether. Furthermore, the court-appointed judicial managers added that there was no timeline for repayment of creditors’ debt and no details of payment beyond 30% of liabilities.

Hodlnaut, a Singapore-based company with operations in Hong Kong, was impacted by the $1.5 trillion loss in the crypto market following last year’s bankruptcies and regulatory scrutiny, including FTX and Binance. According to the reports, OPNX is pitched as a venue to trade crypto claims, such as those associated with bankrupt crypto platforms, and has proposed to take control of Hodlnaut.

Mark Lamb and Sudhu Arumugam, the founders of the CoinFLEX exchange, are the founders of OPNX. Bloomberg mentioned that FLEX currently has a market value of $54.4 million and a trading volume of $3,260 at press time. OPNX was trading at $0.55 according to CoinGecko, which is down by 95% since the offer was submitted to the Singapore court.

OPNX is associated with Three Arrows Capital (3AC), according to reports. However, 3AC’s Co-founders, Su Zhu, and Kyle Davies, said they contributed to OPNX and continued to “tout it” on X (formerly Twitter), but the co-founders weren’t involved in the daily management of the exchange. Authorities in Dubai fined Zhu, Davies, Lamb, and Arumugam in August 2023 for running OPNX without the necessary local license.