3AC-linked exchange bids $30m to acquire troubled Holdnaut

Founders of the defunct hedge fund Three Arrows Capital (3AC) are actively promoting their newly launched digital asset exchange, OPNX, as they seek to acquire struggling cryptocurrency lender Hodlnaut.

OPNX aims to rescue Hodlnaut with an infusion of funds amounting to $30 million in FLEX digital tokens traded on the CoinFlex exchange.

Hodlnaut, which operates in Singapore and Hong Kong, has been undergoing a court-monitored reorganization due to financial troubles.

The tokens, owned by OPNX co-founders Mark Lamb and Sudhu Arumugam, will facilitate a partial payout to creditors, effectively concluding their claims.

According to Bloomberg News, the term sheet reveals that after the capital injection, OPNX would gain a 75% ownership stake in Hodlnaut. The remaining 30% would consist of various tokens representing creditors’ claims. The bid is contingent on the creditors’ approval.

Creditors could receive up to 95% of the available corporate assets if they support the scheme.

Meanwhile, OPNX founders Su Zhu and Kyle Davies have been promoting the exchange, but are not involved in the day-to-day operations.

A look back at Hodlnaut

Hodlnaut’s troubles date back to a year ago, when it faced financial difficulties and was forced to suspend withdrawals. This lead to an ongoing court-based reorganization.

The company’s founders, Simon Lee, and Zhu Juntao, initially proposed selling the firm to creditors as an alternative to liquidation, but key creditors opted for the latter in January.

OPNX’s bid is a glimmer of hope for Hodlnaut’s future, but it comes at a time when Zhu and Davies are facing legal challenges from the liquidators of 3AC. The liquidators are pursuing the two founders for $1.3 billion in alleged losses leading up to the hedge fund’s collapse.

Hodlnaut has yet to respond to the acquisition proposal. Comments from the judicial management overseeing the reorganization are yet to be received.