OPNX Exchange: Three Arrows Co-founders’ Shutdown

OPNX, a bankruptcy claims platform and crypto exchange created by the co-founders of the failed hedge fund Three Arrows Capital (3AC), has announced it will be shutting down by February 14. Users were advised to settle all positions and withdraw their funds by February 7 and 14, respectively. After February 14, all withdrawal functionality will be disabled. OPNX, which stands for Open Exchange, allows users to trade creditor claims of bankrupt cryptocurrency companies.

The announcement of OPNX’s closure caused a significant drop in the price of its native token, OX. Within an hour, the price plummeted 38%, falling from $0.01 to $0.006. The co-founders of OPNX, Su Zhu and Kyle Davies, established the platform after the bankruptcy of their $10 billion Singapore-based crypto hedge fund Three Arrows Capital, which collapsed in June 2022. Following the fund’s collapse, Zhu and Davies disappeared, leading the firm in charge of liquidating 3AC’s assets, Teneo, to subpoena them via X messages to find out their whereabouts.

The shutdown of OPNX adds to the troubles faced by Zhu and Davies. Teneo is currently attempting to recover $1.3 billion directly from the founders, alleging that they used investor funds to take on substantial leverage after the hedge fund became insolvent. In September 2023, the central bank of Singapore issued nine-year prohibition orders against Davies and Zhu for alleged violations of the country’s securities laws at 3AC.