The OPNX exchange, founded by the co-founders the collapsed hedge fund 3AC Su Zhu and Kyle Davies, seeks to acquire a controlling stake in the troubled crypto-lending platform Hodlnaut. Bloomberg reports.
According to a source cited by the agency, OPNX intends to invest $30 million worth of FLEX tokens in the firm “to fund partial creditor payments.” The creditors are expected to approve the plan.
Journalists noted that, if approved, the exchange would own 75% of Hodlnaut. Users would receive 30% of their claims in FLEX and other cryptocurrencies.
At the time of writing, the token’s market capitalization stood at more than $702.5 million. The current price is $7.12.
On August 8, 2022, the Singapore-based crypto lending platformsuspended withdrawals, swaps and token deposits. Its representatives immediately sought court protection from creditors.
To cut costs, Hodlnautlaid off 80% of its staff. Later, the company acknowledged a capital shortfall of $193 million. Of this amount almost $190 million was linked to losses suffered by the platform as a result of the Terra ecosystem collapse.
In November, Singapore policeopened an investigation into the company and its leadership over suspicions of deceit and fraud.
In early 2023 Hodlnaut announced the possibility of liquidation after creditors rejected the proposed restructuring plan. According to Bloomberg, in February several potential buyers showed interest in acquiring the platform and its claims against the collapsed FTX.
Plans by Davies and Zhu to raise $25 million to launch a cryptocurrency exchange with active involvement from representatives of the failed CoinFLEX became known in January.
Later, Zhu announced the opening of a waitlist to access the platform. According to him, OPNX is a way to redeem past mistakes. Many community members greeted the project with skepticism and outrage.
In April, the team behind the crypto exchange announced the official launch and unveiled the distribution of the FLEX token. Leslie Lamb, the wife of former CoinFLEX CEO Mark Lamb, took the post of OPNX CEO. Later she criticized investors who had distanced themselves from the company.
In July, Davis pledged to donate potential proceeds from the new platform to creditors of 3AC for “good karma.”