OPNX, the cryptocurrency bankruptcy claims platform founded by Su Zhu, co-founder of the failed hedge fund Three Arrows Capital (3AC), has officially announced its shutdown. Users received an email advising them to close all positions by February 7 and withdraw funds from the platform by February 14, after which withdrawal functions will be disabled. OPNX, also known as Open Exchange, served as a hybrid platform allowing users to trade creditor claims of bankrupt crypto companies.
Following the announcement, the price of OPNX's native OX token experienced a notable decline, dropping by 38% from $0.01 to $0.006 within an hour, as reported by CoinGecko. Su Zhu and Kyle Davies established OPNX after the collapse of Three Arrows Capital, a Singapore-based cryptocurrency hedge fund that managed $10 billion and shuttered in June 2022. Zhu and Davies faced controversy as they disappeared after the hedge fund's collapse, prompting Teneo, tasked with liquidating 3AC's assets, to subpoena the duo via a message on X as they withheld information about their whereabouts.
The closure of OPNX contributes to the ongoing challenges faced by Zhu and Davies. Teneo is actively pursuing the recovery of $1.3 billion directly from the founders, alleging that the pair heavily leveraged investor funds after the hedge fund's bankruptcy. In September 2023, the Reserve Bank of Singapore imposed a nine-year ban on Davies and Zhu over alleged breaches of Singapore's securities laws related to 3AC's activities.
The downfall of Three Arrows Capital and the subsequent closure of OPNX mark a tumultuous period for Zhu and Davies, with legal and financial challenges compounding their difficulties in the cryptocurrency industry.
