Figure Markets Partners with Ionic Digital Shareholder

Figure Markets Collaborates with Ionic Digital Shareholder

Figure Markets has recently announced its collaboration with Veton Vejseli, a shareholder of Ionic Digital, seeking access to important company records under Delaware law. This initiative aims to investigate potential misconduct by the Board of Directors, focusing on how they are executing their fiduciary responsibilities.

Importance of Accessing Company Records

Figure Markets and Mr. Vejseli believe that obtaining these records is essential for safeguarding shareholder interests. Concerns have arisen regarding possible self-dealing actions by board members, which could disadvantage shareholders. Some key points of investigation include:

• Contracts related to Hut 8 Corp (NASDAQ: HUT), a competitor involved in bitcoin mining whose CEO influences the board composition of Ionic.
• Payout structures for board members that may be deemed excessive.
• Limitations placed on the trading of Ionic shares.
• Hiccups in registering the company’s Class A Common Stock.

Investigating Board Behavior and Actions

Interactions with the Board, public filings, and additional observations have led Figure Markets and Mr. Vejseli to suspect that the Board might be prioritizing its interests over shareholder concerns. This alleged behavior is highlighted by:

• Dismissal of proposals from Figure Markets during the Celsius bankruptcy scenario.
• Endorsement of transactions with Hut 8 that might bypass necessary shareholder scrutiny.
• Self-appointment of pivotal individuals within the Chapter 11 proceedings.
• High compensation packages for board members.
• Prolonged delays in listing and registering Ionic’s stock publicly.

Statements from Figure Markets CEO

Mike Cagney, the CEO of Figure Markets, expressed disappointment over the handling of creditors during the Celsius bankruptcy, stating that, "It’s unfortunate how creditors have been treated.” He emphasizes that forcing a special shareholder meeting could enhance Ionic’s management, governance, and strategic direction, ultimately benefiting shareholders.

Grassroots Movement for Shareholder Awareness

In reaction to increasing shareholder discontent, Figure Markets has started a grassroots social media effort to recruit 25% of Ionic’s shareholders for a special meeting. In a significant achievement, despite the complexity of mobilizing over 86,000 shareholders—none of whom own more than 1%—the campaign has attracted 29% support from the outstanding shareholders, showcasing robust involvement.

Concerns Over Board Negligence

Figure Markets and Mr. Vejseli are concerned that the Board's actions may amount to gross negligence, warranting potential removal. They stress that these actions risk silencing shareholders in the governance process. Gaining access to the company records is seen as a vital step toward reinstating shareholder democracy at Ionic.

Request for Immediate Action

The request for record inspection will allow Figure Markets and Mr. Vejseli to delve deeper into possible misconduct and evaluate the Board’s adherence to fiduciary duties. They urge the Board to act promptly and work proactively to address shareholder apprehensions.

Understanding Figure Markets

Figure Markets is on a mission to democratize finance through innovative blockchain technology. They are creating a comprehensive decentralized marketplace for various asset classes, including crypto, stocks, bonds, and credit. The company offers superior services such as leverage, margin trading, and enhanced liquidity, empowering members to maintain control over their finances while disrupting traditional financial institutions.

Supported by notable venture capital firms and strategic partners like Jump Crypto, Pantera, Distributed Global, Faction Lightspeed, NewForm Capital, and CMT Digital, Figure Markets was established by a team with extensive experience in traditional finance, fintech, and decentralized finance, including founders Mike Cagney and June Ou.

Contact Information

If you would like to learn more about Figure Markets, please reach out to Paula Jackler at press@figuremarkets.com.

Frequently Asked Questions

1. What is the primary goal of Figure Markets in collaborating with Vejseli?

The goal is to investigate potential misconduct by the Board of Directors and protect shareholder interests by accessing company records.

2. What concerns do Figure Markets and Vejseli have regarding the Board?

They are concerned about self-dealing behaviors, excessive compensation, and delays in registering Ionic’s stock.

3. How are shareholders responding to Figure Markets’ initiatives?

Despite the challenges, they have gained support from 29% of Ionic’s shareholders in calling for a special meeting.

4. What does Figure Markets hope to achieve through the record inspection?

They aim to investigate possible wrongdoing and assess how well the Board is performing its fiduciary duties.

5. How is Figure Markets redefining the financial marketplace?

By leveraging blockchain technology to create a decentralized custody marketplace that removes intermediaries and enhances member control over assets.

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