OPNX bids for beleaguered lender Hodlnaut: Bloomberg

Quick Take

  • OPNX has made a bid to inject $30 million into beleaguered lender Hodlnaut, Bloomberg News reported. 
  • The capital injection would be in the form of FLEX tokens and fund a partial creditor payout.
  • The deal is subject to the approval of Hodlnaut creditors. 

OPNX has reportedly made a bid to takeover beleaguered lending firm Hodlnaut, according to a report by Bloomberg News

OPNX, which is backed by Three Arrows Capital co-founders Su Zhu and Kyle Davies, has offered to inject $30 million worth of FLEX tokens into the firm to finance a partial payout to creditors, according to the report.

Citing a term sheet, Bloomberg reported that the deal would result in OPNX owning 75% of Hodlnaut. The plan is subject to the approval of Hodlnaut's creditors. If the plan is approved, then users would receive 30% of their claim in FLEX and other cryptocurrencies, Bloomberg's report adds. 

Crypto credit crisis

Based in Singapore, Hodlnaut was among the several victims of crypto's 2022 credit crisis which resulted in the bankruptcy of a wide-range of lenders including BlockFi, Voyager Digital, and Three Arrows Capital. As for Hodlnaut, the firm halted withdrawals in August 2022 after it lost about $190 million in the aftermath of the crash of Terra Luna. The firm was placed under creditor protection by Singapore's High Court at the end of August 2022. 

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Three Arrows sought protection from creditors in July 2022 under Chapter 15 bankruptcy protection. The petition was filed in the U.S. Southern District of New York. Meanwhile, Three Arrows' liquidators are seeking more than $1 billion from Zhu and Davies. 

Paltry volumes

OPNX was born out of a partnership with Zhu and Davies as well as Mark Lamb, the co-founder of CoinFlex. The group restructured and rebranded the erstwhile derivatives trading platform to launch OPNX in its current form as a venue to trade crypto-related bankruptcy claims and spot cryptocurrencies. 

OPNX's volumes are paltry, with the firm only turning over $116,000 worth of cryptocurrency over the last 24-hours, according to CoinGecko.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].