OPNX, the crypto bankruptcy claims and trading platform founded by Su Zhu and Kyle Davies, co-founders of the now-defunct hedge fund Three Arrows Capital, has officially declared its closure. The exchange urged users to settle all positions by February 7 and withdraw funds by February 14, after which withdrawal functionality will be disabled.
The hybrid platform, named Open Exchange, served as both a bankruptcy claims platform and a cryptocurrency exchange. It allowed users to trade creditor claims of bankrupt crypto companies. However, following the announcement of its shutdown, the native OX token's price experienced a significant drop of 38%, falling from $0.01 to $0.006 within an hour.
OPNX was established by Zhu and Davies after the collapse of their $10 billion crypto hedge fund, Three Arrows Capital, in June 2022. The hedge fund's insolvency led to legal challenges, and Teneo, responsible for liquidating 3AC's assets, is currently pursuing the recovery of $1.3 billion directly from the founders. Teneo alleges that Zhu and Davies engaged in substantial leverage using investor funds after the hedge fund's insolvency.
The closure of OPNX adds further complications to the ongoing legal troubles faced by Zhu and Davies. In September 2023, Singapore's central bank issued nine-year prohibition orders against them, citing alleged violations of the country's securities laws during their tenure at Three Arrows Capital.
As OPNX shuts its doors, the founders' challenges continue to mount, with legal proceedings and financial recovery efforts intensifying against them. The closure marks a chapter of uncertainty and legal scrutiny for the co-founders and the users of the now-defunct crypto exchange.