Investigation Into Board Misconduct at Ionic Digital by Figure Markets

Potential Board Misconduct Investigation

Figure Markets today announced that it is working with Veton Vejseli, a shareholder of Ionic Digital, to investigate potential misconduct by the Board of Directors. Under Section 220 of the Delaware General Corporation Law, access to specific company records has been requested to examine how the board has upheld its fiduciary duties.

Key Issues Under Investigation

• Agreements with Hut 8 Corp., a competitor in bitcoin mining.
• Excessive compensation for board members.
• Limitations on trading Ionic stock.
• Delays concerning the registration of Class A Common Stock.

According to Figure Markets and Mr. Vejseli, these inquiries stem from significant concerns related to potential self-dealing behavior by board members. They suspect actions that may reflect priorities skewed towards personal interests rather than those of the shareholders.

Concerns from Shareholder Engagement

Figure Markets has launched a grassroots campaign to secure a special shareholder meeting, indicating a significant discontent among them. Encouragingly, they've attracted interest from 29% of the shareholders despite the logistical challenges posed by over 86,000 stakeholders.

As stated by CEO Mike Cagney, restoring governance and value for shareholders is paramount. They urge the Board to act swiftly and engage constructively with shareholder reflections.

Next Steps

The request for inspection of the Books and Records plays a critical role in ensuring shareholder democracy at Ionic. Figure Markets aims to uncover the truth and institute accountability for any potential misconduct.