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Courtroom battle leads to Bitstamp’s new owner winning against its founder

Exchange

www.thecoinrepublic.com 16 February 2022 11:30, UTC
  
Reading time: ~3 m

  • Bitstamp’s new owners have won the courtroom battle against founder Nejc Kodrič
  • Controversial call option may be exercised now by the founders 
  • Owned by NXHM, which acquired Bitstamp in October 2018 won the battle 

A call option that permits Bitstamp’s new proprietors to gain the remainder of originator Nejc Kodrič’s portions at a major markdown has been maintained.

Kodrič, Bitstamp’s author, had recorded a claim to attempt to keep the dubious call choice from being worked out.

Nejc Kodrič, author and previous CEO of Bitstamp, has fizzled in his bid to stop the crypto trade’s new proprietors from wrestling away his excess offers. In a new document, Judge Eason Rajah QC decided for the respondent Bitstamp Holdings NV, a speculation vehicle claimed by NXMH, which obtained Bitstamp in October 2018.

Rajah said he would make orders requiring Kodrič to sell his leftover offers – which he had moved to a Luxembourg-based element named White Whale Capital – to Bitstamp Holdings NV. The decision actually maintains the legitimacy of a questionable call choice that was at the core of the debate.

Case intensifies 

In August last year, Kodrič documented a claim against Bitstamp Holdings NV in the United Kingdom’s High Court after the organization practiced a call choice to eat up his leftover 9.8% stake in the organization for $13.46 million, a value his lawful group depicted as altogether lower than their fairly estimated worth.

Kodrič guaranteed that the choice was invalid and unenforceable and sought a directive forestalling the trading company from driving through an exchange of his portions (he had as of now sold 66% of his stake in Bitstamp in the 2018 deal).

With all due respect, NXMH’s auxiliary contended that it was authoritatively qualified to obtain Kodrič’s portions at a markdown in light of its choice arrangement, which had been hailed at the hour of the procurement. NXMH, a trading company with some €3 billion of resources under administration, is owned by South Korean gaming very rich person Kim Jung-ju.

We are satisfied the court has maintained our authoritative privileges, said a representative for the organization.

Crypto exchange in a pool

Filings associated with the claim have revealed insight into the terrible end to Kodrič’s residency at the highest point of Bitstamp, which he set up in 2011.

In the underlying claim, Kodrič depicted Jong Hyun (Jamie) Hong, one of NXMH’s board agents, as unfriendly and tyrannical. Bitstamp Holdings NV terminated back with all due respect that it didn’t respect Kodrič’s association as an investor or chief to be basic or important in any work to take the trade public.

The most recent filings uncover Kodrič’s disappointment when Bitstamp’s proprietors attempted to practice the call choice.

I’m extremely frustrated Jamie! Trust you, I think it is worth the effort. I don’t think it is. I don’t have the foggiest idea what I fouled up. However, assuming it is simply cash, I think you are committing an error, Kodrič told Hong at that point, as indicated by the judgment document. Another concentrate shows that Kodrič told Dan Morehead, organizer and CEO of Pantera Capital, that it looked like Hong was driving him out of the organization.

Previous Starling Bank COO Julian Sawyer took over as CEO of Bitstamp in July 2020. When reached, Sawyer said the claim was a private matter that doesn’t affect the organization’s technique.

Also read: Top BNB whale grabs 140 billion SHIB in a buying spree

The outing set alerts ringing for Kodrič, who feared the valuation could lead NXMH to practice its call choice and secure his excess offers generally economically.

His interests were intensified when, at a procedure meeting at the Hotel Le Royal in Luxembourg on December 16, 2019, Ghys and NXMH other board agents Jong Hyun (Jamie) Hong revealed plans to focus on an IPO at a $1 billion valuation inside three years, as indicated by the claim


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