OPNX, the crypto bankruptcy claims platform and trading exchange launched by the co-founders of the failed hedge fund Three Arrows Capital, is set to cease operations and shut down by February 14th, 2024.
The platform has issued an email to users, strongly advising them to settle all positions by February 7 and withdraw their funds by February 14, as all withdrawal functionality will be disabled after that date.
Open Exchange, provides a hybrid platform that allows users to trade creditor claims of bankrupt crypto companies. Founded by Su Zhu and Kyle Davies following the bankruptcy of their $10 billion Singapore-based crypto hedge fund Three Arrows Capital in June 2022, the platform faced challenges, leading to its closure.
OPNX Token Price
The native token of Open Exchange, OX, experienced a significant price drop of 38%, falling from $0.01 to $0.006 within an hour of the announcement.
The closure of the exchange adds to the troubles faced by Su Zhu and Kyle Davies, who are currently dealing with legal challenges from the liquidation of Three Arrows Capital’s assets.
Teneo, the firm handling the liquidation, is seeking to recover $1.3 billion directly from the founders, alleging that they took on substantial leverage with investor funds after the hedge fund became insolvent.
In September 2023, Singapore’s central bank issued nine-year prohibition orders to Davies and Zhu over alleged violations of the country’s securities laws at Three Arrows Capital. The closure further reflects the challenges faced by the co-founders and the impact of their previous business ventures on the crypto community.