It’s no secret that corporate governance can sometimes be a murky environment where decisions are made that may not always benefit shareholders. In the case of Ionic Digital, concerns have been raised about potential misconduct by the Board of Directors. Specifically, Figure Markets and shareholder Veton Vejseli have requested access to company records in order to investigate actions that may have disadvantaged shareholders. The areas of investigation include agreements with a competitor, excessive board compensation packages, restrictions on trading Ionic stock, and delays in registering the company’s Class A Common Stock.
One of the key allegations against the Board of Directors of Ionic Digital is that they may be prioritizing their own interests over those of shareholders. This behavior is believed to be evidenced by the rejection of Figure Markets’ proposals during Celsius bankruptcy proceedings, approval of deals with a competitor that circumvent shareholder oversight, self-appointment of decision-makers in the Chapter 11 process, generous compensation packages for board members, and unreasonable delays in listing and registering Ionic’s stock. These actions have raised concerns about potential self-dealing behavior and a lack of transparency in corporate decision-making.
In response to what they perceive as widespread shareholder dissatisfaction, Figure Markets has initiated a grassroots social media campaign to secure support for a special shareholder meeting. Despite the challenge of rallying a large number of shareholders, Figure Markets has managed to garner support from 29% of Ionic’s outstanding shareholders. This support demonstrates a significant level of concern among investors about the actions of the Board of Directors and a desire for greater transparency and accountability in corporate governance.
Access to the company’s Books and Records represents a critical step towards restoring shareholder democracy at Ionic Digital. By investigating potential misconduct and assessing the Board’s performance of its fiduciary duties, Figure Markets and Mr. Vejseli hope to hold the Board accountable for their actions and address shareholder concerns. They urge the Board to act with urgency and collaborate constructively to ensure that the interests of shareholders are protected and that corporate governance is conducted in a transparent and ethical manner.
Figure Markets is a company that aims to democratize finance through blockchain technology. They are focused on building a decentralized exchange for various asset classes, including crypto, stocks, bonds, and credit. By offering leverage, margin trading, liquidity, borrowing options, and unique investment opportunities, Figure Markets seeks to empower its members and disintermediate legacy brokers and lenders. Founded by experienced entrepreneurs and operators from traditional finance, fintech, and DeFi sectors, Figure Markets is backed by leading venture capital firms and strategic partners. Their commitment to transparency, accountability, and shareholder rights is evident in their ongoing efforts to hold companies like Ionic Digital accountable for their actions. Visit www.figuremarkets.com to learn more about Figure Markets and their mission to revolutionize the finance industry.