According to a recent court filing, interim judicial managers for the troubled crypto lender Hodlnaut oppose a takeover by the crypto firm OPNX, which is linked to the now-defunct crypto hedge fund Three Arrows Capital and its founders.
OPNX Takeover Faces Resistance from Hodlnaut’s Judicial Management
On September 19, 2023, Bloomberg’s Suvashree Ghosh reported on a recent court filing stating that Hodlnaut’s judicial managers oppose a OPNX takeover deal. Hodlnaut, a crypto lender, halted withdrawals in August 2023, citing deteriorating market conditions. A week later, Hodlnaut sought judicial management to rehabilitate the company.
Court filings showed Hodlnaut faced a shortfall of about $193 million. A significant portion of the company’s losses came from the decline of Terra. OPNX, a crypto-centric exchange allowing users to trade claims of bankrupt crypto firms, was founded by Three Arrows Capital‘s Kyle Davies and Su Zhu. The Bloomberg report mentioned that estate administrators allege the judicial managers deem a $30 million payment in FLEX tokens as “illiquid.”
The report indicates that 60% of Hodlnaut’s creditors oppose the deal, but neither the firm’s interim judicial managers nor OPNX offered comments. This news comes after Zhu and Davies were barred from participating in regulated financial activities in Singapore for nine years. Additionally, on August 16, Dubai’s Virtual Asset Regulatory Authority (VARA) fined OPNX.
What do you think about Hodlnaut’s creditors and interim judicial managers opposing the OPNX deal? Share your thoughts and opinions about this subject in the comments section below.
via Jamie Redman
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