Open Exchange (OPNX), a digital-asset exchange linked to the founders of Three Arrows Capital, which collapsed in 2022, has submitted an offer to take control of struggling crypto lender Hodlnaut. The restructuring of Hodlnaut is currently being overseen by a court in Singapore, and OPNX’s offer involves an injection of the equivalent of $30 million in FLEX digital tokens to fund a partial creditor payout and finalize claims.
FLEX, associated with the CoinFLEX exchange, has a market value of about $729 million and saw a trading volume of just $502,446 over the past 24 hours. The OPNX offer was submitted to the court after objections were raised over Hodlnaut’s directors emailing the bid directly to its users.
If the capital injection is approved, OPNX would own 75% of Hodlnaut, and creditors would receive 30% of their claims in FLEX and other tokens, or a pro-rata payment of up to 95% of the total available corporate asset pool, whichever is higher. Mark Lamb, one of the founders of OPNX, stated, “We see a lot of potential in the Hodlnaut platform and look forward to working closer with them.”
A tangled history and legal challenges
Hodlnaut, based in Singapore with operations in Hong Kong, suspended withdrawals a year ago before entering court-based restructuring. The founders had earlier proposed selling the business instead of liquidating the embattled firm. In January, key creditors rejected a restructuring plan in favor of liquidation.
The bid for Hodlnaut comes with further complications. OPNX’s founders, including Zhu and Davies, were reprimanded by authorities in Dubai for operating without the required local license. The liquidators of Three Arrows are seeking to recover $1.3 billion from Zhu and Davies, accusing them of failing to cooperate with their investigation.
Hodlnaut was one of many lenders affected by the financial difficulty following the Terra-LUNA collapse last year. While Hodlnaut’s founders convinced creditors that selling the firm would lead to better outcomes, the OPNX offer’s success remains uncertain.
The offer from OPNX to acquire Hodlnaut represents a complex twist in the ongoing saga of crypto lender Hodlnaut’s attempts to navigate through legal and financial challenges. With connections to the failed hedge fund Three Arrows Capital and its own legal issues, OPNX’s bid adds a new layer to an already intricate situation. Whether this offer leads to a revival for Hodlnaut or adds further complications will depend on the decisions of the Singapore court and the creditors involved.