Open Exchange (OPNX) shutters amid troubles for 3AC founders

abdelaziz Fathi

Open Exchange (OPNX), a crypto derivatives platform linked to the co-founders of Three Arrows Capital, has announced its closure in February 2024. The decision was shared on the social media platform X and marks the end of operations for the exchange formerly known as Coinflex.

The OPNX team assures users that they will manage an orderly shutdown process, urging them to settle all positions by February 7. After this deadline, the platform will automatically settle any open positions. Users have been given until February 14 to withdraw their funds and export historical data.

The announcement of OPNX’s closure caused its OX token to drop 38% in value.

OPNX’s association with Kyle Davies and Su Zhu, co-founders of the bankrupt crypto lender Three Arrows Capital, has been a focal point of its history. The exchange was founded following the collapse of their $10 billion Singapore-based crypto hedge fund in June 2022. After the fund’s demise, Zhu and Davies faced legal and financial challenges, including evading contact with Teneo, the firm responsible for liquidating 3AC’s assets.

The shutdown of OPNX adds to the difficulties faced by Zhu and Davies. Teneo is currently pursuing the recovery of $1.3 billion from the founders, alleging misuse of investor funds through leverage post-insolvency. Additionally, Singapore’s central bank issued nine-year prohibition orders against Davies and Zhu for alleged violations of the country’s securities laws at 3AC.

Also in December, a British Virgin Islands court ordered to freeze assets valued at up to $1.1 billion linked to the founders of the now-defunct crypto hedge fund. Additionally, Davies’ wife, Kelly Chen, is also subject to the asset freeze.

Teneo seeks to recoup $3.5 billion for creditors, as the fund faced insolvency after the turmoil caused by the collapse of the Terra ecosystem.

Three Arrows Capital filed for bankruptcy in July 2022. The fund, once a heavyweight in the crypto hedge fund sphere, managed billions in assets, investing across various sectors including liquid tokens, startup equity, and NFTs.

The fund’s liquidators, Teneo, have faced challenges with Zhu and Davies’ cooperation since the fund’s collapse. A lack of collaboration prompted legal actions, including attempts to subpoena the pair via social media and allegations of losses attributed to the founders’ actions preceding the fund’s downfall.

  • Read this next

    Digital Assets

    BREAKING: Bitcoin breaks all records with a massive $1.347 billion transaction

    This transaction has surpassed previous records, setting a new benchmark for Bitcoin trades. Before this event, the largest Bitcoin transactions included a $1.1 billion trade in April 2020 involving 161,500 BTC, and other significant transactions ranging from $491 million to $1.033 billion throughout 2019 and 2020.

    Digital Assets

    Uniswap debuts Ethereum ‘uni.eth’ subdomains

    Decentralized exchange platform Uniswap has integrated Ethereum Name Service (ENS), allowing users to create human-readable domain names and cryptocurrency wallet addresses using .eth endings.

    Web3

    Magic Square Expands with TruePNL Acquisition

    Binance’s web3 app store, Magic Square, acquired token platform TruePNL in a cash deal this week for an undisclosed sum. The deal brings TruePNL’s infrastructure (excluding branding & token) under Magic Square’s wing. Initially seeking a partnership, Magic Square opted for a full acquisition.

    Crypto Insider

    The Future of Prediction Markets? Zeitgeist Launches Decentralized Court System

    Polkadot-powered prediction market protocol Zeitgeist has announced the launch of its latest innovation: a decentralized court system.

    Digital Assets

    Crypto exchange Kraken fires back at SEC lawsuit, claiming overreach

    Crypto exchange Kraken is pushing back against the U.S. Securities and Exchange Commission (SEC), seeking to toss out a lawsuit that accused the platform of operating without proper registration.

    Industry News

    Exness Named a Best Place to Work in 2024

     Global leader Exness, tops in retail trading volume, earns 2024 “Best Place to Work” award, cementing its employee-centric culture after three prior years of winning the Cyprus national title.

    Digital Assets

    Swan Bitcoin taps Bakkt for crypto offering in the US

    “We are thrilled to be taking this exciting step forward in our partnership with Swan. This is just the beginning of our collaboration, as we intend to explore further growth opportunities together in the future, including expansion into international markets.”

    Digital Assets

    Polkadot Awards Bifrost a 500,000 DOT Loan to Enhance Liquid Staking Adoption

    Bifrost, a leader in liquid staking solutions, has secured a 500,000 DOT loan from Polkadot’s treasury to expand the reach and utility of its vDOT product within the ecosystem.

    Digital Assets

    FTX cleared to sell $1 billion stake in AI outfit Anthropic

    A Delaware bankruptcy court just approved a plan allowing the now-defunct FTX and its creditors to offload the exchange’s $1 billion stake in AI outfit Anthropic.

    <