3AC Founder’s OPNX Wants to Take Over Crypto Lender Hodlnaut

OPNX, the recently launched crypto exchange connected to the founders of the now-defunct, hedge fund Three Arrows Capital (3AC), is reportedly making a bid to take over the struggling crypto lender Hodlnaut.

This bid comes at a crucial time, as Hodlnaut’s plan of restructuring is currently under the supervision of a court in Singapore.

Enticing Offer from OPNX

According to reports from Bloomberg, anonymous sources have revealed that the exchange’s offer involves injecting a substantial sum of $30 million worth of FLEX digital tokens into Hodlnaut, with the aim of facilitating a partial creditor payout and finalizing pending claims.

According to a term sheet cited by Bloomberg, the proposed deal would see OPNX taking control of 75% of Hodlnaut’s ownership. If the deal becomes successful, Hodlnaut’s creditors would receive 30% of their claims in FLEX digital tokens and other cryptocurrencies. This approach offers them a direct stake in the future potential of the acquired entity.

Alternatively, creditors could opt for a pro-rata payment, potentially allowing them to recover up to 95% of the total available corporate asset pool. This option prioritizes more immediate financial recovery and stability.

This bid, however, awaits the crucial nod of approval from Hodlnaut’s creditors, who hold the fate of the acquisition in their hands.Their decision carries profound implications for the future trajectory of Hodlnaut and the entire crypto lending ecosystem.

Hodlnaut’s Bankruptcy Saga

Hodlnaut found itself among the casualties of the tumultuous crypto landscape, suspending withdrawals more than a year ago due to financial challenges. This led to the company entering into a court-based restructuring process in Singapore, reflecting the depth of its financial difficulties. 

Throughout this period, Hodlnaut has grappled with the complexities of financial rehabilitation and creditor interests. Hodlnaut’s founders, Simon Lee and Zhu Juntao, earlier this year proposed selling the business as a viable alternative to liquidation, arguing that it would be a more favorable outcome for creditors. 

This proposal came in the wake of rejected restructuring plans, which had led some key creditors to express a preference for liquidation. Regulatory concerns have also cast a shadow over the developments. Figures associated with both Hodlnaut and OPNX, including Mark Lamb, Sudhu Arumugam, and others, faced reprimands in Dubai for operating and promoting OPNX without the required local license.