Tony Vejseli, Figure Markets and GXD Labs Provide Clarification Following October 28 Meeting with Ionic Digital’s Board

[PRESS RELEASE – San Francisco, USA, October 31st, 2024]

Tony Vejseli, Figure Markets Holdings Inc., and GXD Labs, LLC (collectively “the Group”) today issued a statement to address recent developments following a meeting held on October 28 at White & Case’s Midtown Manhattan offices, where the Group met with the board of directors (the “Board”) and management team of Ionic Digital, Inc. (the “Company” or “Ionic”). The Group thanked White & Case for hosting the discussion but noted a need for clarification following the Company’s summary of the meeting in a press release, which they believe misrepresented several key points.

In response to Ionic’s statement regarding its affirmation of “strong momentum” and its “laser-focus” on implementing its strategic initiatives, the Group raised concerns over the Board’s apparent lack of knowledge of core operating metrics. They highlighted that the Board appeared unprepared to discuss any aspects of its financial or operational performance, including by answering any of Mr. Vejseli’s questions as described in his post on X, leading to questions about the Company’s competitive position and valuation. The Group also expressed skepticism about Ionic’s ability to complete its audit, initially expected in early 2024 and now anticipated by Q1 2025 according to the Company, within the announced timeframe due to the apparent lack of available financial information, including the Company’s EBITDA and expenses.

The Group indicated that alternative liquidity options for shareholders were discussed, yet they felt these options had not been fully explored or evaluated by the Board. The Group also raised concerns over Ionic’s contract with Hut 8, noting that, although it had presented a proposed solution, no alternative path forward was discussed by the Board or management.

During the meeting, the Group outlined a proposed plan for refreshment of the Board, specifically suggesting the resignation of three current board members—Scott Duffy, Tom DiFiore, and Emmanuel Aidoo – to be replaced by three new, independent directors with the requisite experience and skill sets. The proposal, supported by a detailed presentation, emphasized the need for strategic and experienced leadership to better align the company’s actions with shareholder interests.

Shareholders are encouraged to review the proposal and consider supporting a special meeting to vote on board changes.

About Figure Markets

Figure Markets is democratizing finance through blockchain. We’re building the exchange for everything – a decentralized custody marketplace for crypto, stocks, bonds, credit and more. We’re bringing best-in-class leverage, margining, and liquidity to our exchange, while offering our members extensive borrowing options and unique investment opportunities. Figure Markets puts our members in control of their assets and data, disintermediating legacy brokers, exchanges and lenders.

Figure Markets is backed by leading venture capital firms and strategic partners, including Jump Crypto, Pantera, Distributed Global, Faction Lightspeed, NewForm Capital and CMT Digital. Figure Markets was founded by a seasoned team of entrepreneurs and operators from TradFi, fintech, and DeFi, including Mike Cagney and June Ou.

Users can learn more at www.figuremarkets.com.