The interim judicial managers of the collapsed cryptocurrency lender Hodlnaut have reportedly rejected the latest buyout deal amid the settlement token plummeting 90%.
Hodlnaut administrators have opposed the takeover terms from cryptocurrency exchange OPNX, which was established by Kyle Davies and Su Zhu, the co-founders of failed hedge fund Three Arrows Capital (3AC).
In a recent court filing, the interim managers argued that the $30 million offer of Flex (FLEX) tokens is “illiquid” and has “speculative value,” Bloomberg reported on Sept. 19. A majority of Hodlnaut Group’s creditors accounting for 60% of the total debt amount also opposed the OPNX deal.
The administrators referred to FLEX losing roughly 90% of value since OPNX made an offer to take over 75% of Hodlnaut in early August 2023. At the time of the proposal, FLEX traded at around $7. According to data from CoinGecko, the Flex Coin is trading at $0.58 at the time of writing.
Apart from the concerns around FLEX, Hodlnaut’s interim judicial managers were worried about “no injection of cash or assets with similar liquidity,” implying major digital assets like Bitcoin (BTC) or Ether (ETH). The managers were also unsatisfied with OPNX providing no timeline for repayment of creditors’ debt and no details of payment beyond 30% of liabilities.
Coinflex suspended all withdrawals in June 2022, with the CEO citing extreme market conditions and “continued uncertainty involving a counterparty.” The exchange filed for restructuring in a Seychelles court as it seeks to recover $84 million in losses from a large individual customer. Coinflex expects to officially cease operations on Oct. 31, 2023, advising its customers to withdraw all funds from the platform by the shutdown date.
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The Royal Navy will get 25 new warships – and could get three more – as the government indicates where its planned rise in defence spending will go.
Defence Secretary Grant Shapps told Sky News there are 28 new ships and submarines in the design or construction stage at the moment for the UK’s armed forces.
He clarified that 22 ships are “already in the system” – but there is less clarity over six new warships he announced for the Royal Marines today.
The defence secretary said that the government is committing to three of the new “versatile” ships for the Marines, “and then possibly another three as well”.
He said this is a “very, very large shipbuilding programme, a lot of warships, the golden era of shipbuilding here”.
Mr Shapps added: “It’s all possible because just last month we agreed as a government to spend 2.5% of our GDP on our defence sector because we think it’s very, very important to make sure that those who would seek to do us harm are put off, that they are dissuaded because they can see that we’re serious about our defence.”
But defence spending fell in the early years of the Conservative government, which has been in power for 14 years, and spending was not boosted when Ukraine was invaded in 2014 or 2022.
Mr Shapps said the Tory pledge is different to Labour’s because the Conservatives have “set out a timeline”.
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“We’ve also said how we would go about largely funding this, and that’s by reducing the size of the civil service, which is much bigger than it was before COVID,” he said.
“We want to get it back down to the size it was before and use that money to spend on defence.
“I have to say, as defence secretary, with everything that I know in this role, that I think that the Labour position presents a danger to this country because it will send a signal to our adversaries that we’re not serious about our defence if we won’t set out that timetable.”
Labour’s shadow work and pensions minister Alison McGovern said she is “sceptical” about the Conservatives’ claim about how they will fund the spending rise.
She said Labour has had to pledge the rise for when the economy allows “because of what the Conservative Party have done to our economy” – as she accused Liz Truss and Rishi Sunak of implementing “big unfunded tax cuts”.
Ms McGovern added: “I think everybody would expect Rachel Reeves as the shadow chancellor to say, well, we will make our plans when we’ve got access to all of the books, all of the details of Ministry of Defence spending.”
Mr Shapps said the government did not spend as much on defence previously because countries such as China, North Korea, Iran and Russia were not such a threat.
The defence secretary added: “We were living in very, very different times.”
He said the government has also added £24bn to the defence budget over the past couple of years and the UK is “by a country mile the largest spender on defence in Europe, with the second largest in NATO after only the US”.
Discussing the UK’s current fleet, Mr Shapps said sister ships HMS Albion and HMS Bulwark are due to come out of service in 2033-2034 but the defence secretary said they will not be scrapped before that.
Albion and Bulwark are currently used as the Royal Navy’s landing platform docks to transport the Royal Marines.
Mr Shapps also announced HMS Argyll and HMS Westminster, two frigates with a combined service of 63 years, are to be retired, with HMS Argyll sold to BAE Systems to be used to support apprentice shipbuilder training.
The new ships being built include Type 26 and Type 31 frigates in Scotland, Astute and Dreadnought submarines in Barrow-in-Furness, and Fleet Solid Support ships in Belfast and Devon.
If the Justice Dept. prevails in the case against the cryptocurrency mixer, internet service providers and the post office may also be liable to transmitter requirements, they said.