Top Investment Manager Reveals Potential Board Misconduct at Ionic Digital
San Francisco, California, September 7th, 2024, Chainwire
Figure Markets, in partnership with Veton Vejseli, a shareholder of Ionic Digital, has officially requested access to vital company records under Section 220 of the Delaware General Corporation Law. This move aims to uncover any potential misconduct by the Board of Directors and evaluate their performance of fiduciary duties.
Figure Markets and Mr. Vejseli stress the importance of accessing these records (referred to as the “Books and Records”) to safeguard shareholder interests. The request stems from worries about possible self-dealing actions by board members that may have negatively impacted shareholders. Key areas of investigation include:
- Contracts with Hut 8 Corp (NASDAQ:), a bitcoin mining operator and competitor to Ionic Digital, whose CEO controls board seats at Ionic.
- Excessive compensation packages for Board members.
- Trading restrictions on Ionic stock.
- Delays in registering the company’s Class A Common Stock.
Based on various sources, Figure Markets and Mr. Vejseli suspect that the Board may be prioritizing its own interests over those of shareholders. This alleged behavior is supported by:
- Rejection of Figure Markets’ proposals during Celsius bankruptcy proceedings.
- Approval of deals with Hut 8 that bypass shareholder oversight.
- Self-appointment of key decision-makers during the Chapter 11 process.
- Generous compensation packages for Board members.
- Unreasonable delays in listing and registering Ionic’s stock.
“Having witnessed the Celsius bankruptcy process firsthand, it’s disappointing to see how creditors have been treated,” noted Mike Cagney, CEO of Figure Markets. “By pushing for a special shareholder meeting to enhance Ionic’s management and governance, we aim to preserve value for shareholders.”
In response to growing shareholder discontent, Figure Markets has launched a grassroots social media campaign to rally 25% of Ionic shareholders for a special meeting. Despite the challenge of uniting 86,000 shareholders, none of whom own more than 1% of the stock, Figure Markets has successfully garnered support from 29% of outstanding shareholders.
Figure Markets and Mr. Vejseli suspect that the Board’s actions may amount to gross negligence and warrant removal. They also fear that these actions may have silenced shareholders in company decision-making. Access to the Books and Records is seen as a crucial step in restoring shareholder democracy at Ionic.
This inspection request will enable Figure Markets and Mr. Vejseli to investigate potential misconduct and evaluate the Board’s performance of fiduciary duties. They urge the Board to act promptly and cooperate constructively to address shareholder concerns.
For the complete Books and Records demand, click here.
About Figure Markets
Figure Markets is revolutionizing finance through blockchain technology. We are creating an all-encompassing exchange – a decentralized custody marketplace for cryptocurrencies, stocks, bonds, credit, and more. Our exchange offers top-notch leverage, margin trading, liquidity, borrowing options, and unique investment opportunities. Figure Markets empowers members by giving them control over their assets and data, cutting out traditional brokers, exchanges, and lenders.
Backed by leading venture capital firms and strategic partners like Jump Crypto, Pantera, Distributed Global, Faction Lightspeed, NewForm Capital, and CMT Digital, Figure Markets was founded by a seasoned team of entrepreneurs and operators from traditional finance, fintech, and decentralized finance.
Visit www.figuremarkets.com to learn more.
Contact Paula Jackler at press@figuremarkets.com