Figure Markets Partners with Ionic Digital Shareholder
Figure Markets has announced a partnership with Veton Vejseli, a shareholder of Ionic Digital, to access crucial company records in accordance with Delaware law. This collaboration aims to investigate potential misconduct by the Board of Directors, particularly regarding their fulfillment of fiduciary responsibilities.
Accessing Company Records: A Key Priority
Both Figure Markets and Mr. Vejseli believe that obtaining these records is vital for protecting the interests of shareholders. There are growing concerns about possible self-dealing by board members, which could harm shareholders. Some of the main areas of investigation include:
- Contracts related to Hut 8 Corp (NASDAQ: HUT), a competitor in the bitcoin mining sector whose CEO has sway over the board's composition at Ionic.
- Compensation structures for board members that may be considered excessive.
- Restrictions on trading Ionic shares.
- Issues with the registration of the company’s Class A Common Stock.
Examining Board Conduct and Decisions
Interactions with the Board, along with public filings and other observations, have led Figure Markets and Mr. Vejseli to suspect that the Board may be prioritizing its own interests over those of shareholders. This alleged conduct is underscored by:
- Rejection of proposals from Figure Markets during the Celsius bankruptcy situation.
- Approval of transactions with Hut 8 that may evade necessary shareholder oversight.
- Self-appointment of key figures during the Chapter 11 proceedings.
- High compensation packages for board members.
- Significant delays in the public listing and registration of Ionic’s stock.
Comments from Figure Markets CEO
Mike Cagney, the CEO of Figure Markets, expressed his disappointment regarding the treatment of creditors during the Celsius bankruptcy, stating, "It’s unfortunate how creditors have been treated.” He believes that convening a special shareholder meeting could improve Ionic’s management, governance, and strategic direction, ultimately benefiting shareholders.
Grassroots Movement for Shareholder Engagement
In response to growing shareholder dissatisfaction, Figure Markets has launched a grassroots social media campaign aimed at rallying 25% of Ionic’s shareholders for a special meeting. Remarkably, despite the challenge of mobilizing over 86,000 shareholders—none of whom hold more than 1%—the campaign has garnered support from 29% of the outstanding shareholders, demonstrating significant engagement.
Concerns About Board Negligence
Figure Markets and Mr. Vejseli are worried that the actions of the Board may constitute gross negligence, which could justify their removal. They emphasize that such actions threaten to silence shareholders in the governance process. Accessing the company records is viewed as a crucial step toward restoring shareholder democracy at Ionic.
Call for Immediate Action
The request for record inspection will enable Figure Markets and Mr. Vejseli to further investigate potential misconduct and assess the Board’s compliance with fiduciary duties. They urge the Board to act swiftly and proactively address the concerns of shareholders.
About Figure Markets
Figure Markets is dedicated to democratizing finance through innovative blockchain technology. They are developing a comprehensive decentralized marketplace for various asset classes, including cryptocurrencies, stocks, bonds, and credit. The company provides advanced services such as leverage, margin trading, and improved liquidity, empowering members to take control of their finances while challenging traditional financial institutions.
Backed by prominent 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 team with extensive expertise in traditional finance, fintech, and decentralized finance, including founders Mike Cagney and June Ou.
Contact Information
For more information about Figure Markets, please contact 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.
