• Open Exchange (OPNX) has submitted an offer to take over troubled crypto lender Hodlnaut.
• The offer involves providing $30 million worth of FLEX tokens to Hodlnaut as a partial payout to creditors and to finalize claims.
• OPNX’s founders include Kyle Davies and Su Zhu, the co-founders of bankrupt 3AC.
Open Exchange submits bid for Crypto Lender
Open Exchange (OPNX) has submitted an offer to take over troubled crypto lender Hodlnaut, according to a Bloomberg report on August 6. The proposed deal would involve providing $30 million in FLEX tokens for a partial payout to creditors and to finalize claims. OPNX is headed by Kyle Davies and Su Zhu, who are also the co-founders of now-bankrupt 3AC hedge fund.
Hodlnaut Bankruptcy Protection
Hodlnaut filed for bankruptcy protection last August with its restructuring now being supervised by a Singapore court. If the takeover is successful, OPNX will own a 75% stake in Hodlnaut instead of providing capital injection directly.
The $30 million worth of FLEX tokens that are part of the deal come from CoinFLEX exchange – the platform whose founders Mark Lamb and Sudhu Arumugam started OPNX along with Davies and Zhu.
Benefits for Creditors
The proposed takeover would bring many benefits for creditors, including increased liquidity through trading on CoinFLEx exchange as well as improved security since all assets would be held in cold storage wallets managed by OPNX custodians.
It remains unclear if Open Exchange’s bid will be accepted but it is clear that it offers many potential advantages that could help restructure the debt owed by Hodlnaut while also increasing liquidity access for its customers’ assets.