Lender Rejects $88M in AVAX Tokens in Favor of Cash and Bitcoin for AVAX One

A institutional lender has tightened its grip on AVAX One, forcing the Nasdaq-listed crypto firm to accept stricter debt terms and liquidity requirements. The lender waived a default triggered by CEO Jolie Kahn's July departure after receiving a $1.3 million payment from AVAX One.

The new agreement imposes a 35-fold increase in the company's minimum liquidity requirement, setting it at $3.5 million. However, unlike before, only cash and Bitcoin will be counted toward this threshold, effectively excluding AVAX tokens.

This means that despite holding nearly 14 million AVAX tokens worth around $88 million, according to CoinGecko data, AVAX One cannot meet the new liquidity test.