Figure Markets partners with Ionic Digital shareholders to investigate potential board misconduct

[PRESS RELEASE – San Francisco, California, September 7th, 2024]

Determine Markets introduced in the present day that it, together with Ionic Digital shareholder Veton Vejseli, is requesting sure company data pursuant to Part 220 of the Delaware Normal Company Legislation. The request seeks info to analyze potential misconduct by the board and consider the efficiency of its fiduciary duties.

Determine Markets and Mr. Vejseli consider that entry to those data (“books and data”) is crucial to defending the pursuits of shareholders. The requirement stems from issues about potential self-dealing by board members and conduct that might put shareholders at an obstacle. Particular areas of investigation embrace:

• The settlement was signed with Hut 8 Corp., the proprietor of the Bitcoin mining enterprise and a direct competitor of the corporate, whose CEO controls Ionic’s board seat.
• Board pay is simply too excessive.
• Ionic Inventory Buying and selling Restrictions.
• Delayed registration of the corporate’s Class A standard inventory.

Based mostly on interactions with the board, public filings and different info, Determine Markets and Messrs. Vejseli consider the board might put its personal pursuits forward of these of shareholders. Proof of this sample of habits is alleged to be:

• Determine Markets proposal rejected in Celsius chapter proceedings.
• Accepted transactions with Hut 8 that appeared to bypass shareholder oversight.
• Self-appointment of key determination makers within the Chapter 11 course of.
• Present board members with beneficiant compensation packages.
• There was an unreasonable delay within the itemizing and registration of Ionic shares.

“It’s regrettable that collectors who’ve been concerned within the Celsius chapter case from the outset have been handled badly,” mentioned Mike Cagney, CEO of Determine Markets. “We hope that by forcing a unprecedented normal assembly to enhance Ionic’s administration, governance and technique, we will present Shareholders save worth.”

In response to widespread shareholder dissatisfaction, Determine Markets launched a grassroots social media marketing campaign aimed toward enlisting 25% of Ionic shareholders to name for a particular shareholder assembly. Notably, regardless of the problem of mustering 86,000 shareholders, none of whom holds greater than 1%, Determine Markets nonetheless managed to garner assist from 29% of excellent shareholders.

Determine Markets and Mr. Vejseli consider that the board’s actions might quantity to gross negligence and entitle it to removing. Additionally they fear that these actions might deprive shareholders of a say in company governance. Entry to the books and data is a crucial step in restoring Ionic’s shareholder democracy.

This inspection request will enable Determine Markets and Mr. Vejseli to analyze potential misconduct and consider the Board’s efficiency of its fiduciary duties. They urged the board to behave urgently and work constructively to deal with shareholder issues.

The complete textual content of the books and data necessities will be discovered here.

About Tushi

Determine Markets is democratizing finance by way of blockchain. We’re constructing a decentralized custodial market for buying and selling every thing—cryptocurrencies, shares, bonds, credit score, and extra. We convey best-in-class leverage, margin buying and selling and liquidity to our alternate, whereas offering our members with a variety of lending choices and distinctive funding alternatives. Determine Markets empowers our members to manage their very own belongings and information, eliminating the intermediaries of conventional brokers, exchanges, and lenders.

Determine Markets is backed by main enterprise capital corporations and strategic companions together with Leap Crypto, Pantera, Distributed World, Faction Lightspeed, NewForm Capital and CMT Digital. Determine Markets was based by a crew of skilled entrepreneurs and operators from TradFi, FinTech and DeFi, together with Mike Cagney and June Ou.

For extra info, please go to www.figuremarkets.com.