OPNX, a cryptocurrency bankruptcy claims platform initiated by the founders of the now-defunct hedge fund Three Arrows Capital (3AC), has announced it will terminate all operations and close down by February 14th. In a communication to its users, the platform has urgently advised them to settle their positions by February 7th and ensure all funds are withdrawn before the February 14th deadline, after which the withdrawal functionalities will be permanently disabled.
Originally operating under the name Coinflex, OPNX rebranded in March 2023. The platform is tied to Kyle Davies and Su Zhu, known for their association with 3AC, a crypto fund that declared bankruptcy. OPNX, short for Open Exchange, served as a unique blend of a bankruptcy claims platform and a cryptocurrency exchange, facilitating the trading of creditor claims from bankrupt crypto entities.
Following the shutdown announcement, the value of OPNX’s native token, OX, experienced a sharp decline, dropping 38% from $0.01 to $0.006 in less than an hour, according to CoinGecko.
The inception of OPNX by Zhu and Davies came on the heels of the collapse of their Singapore-based crypto hedge fund, 3AC, which went under in June 2022 with liabilities amounting to $10 billion. The duo faced intense scrutiny and went into hiding shortly after the fund’s bankruptcy, prompting Teneo, the company tasked with liquidating 3AC’s assets, to issue subpoenas through social media platforms due to the concealment of their physical locations.
The impending closure of OPNX compounds the challenges facing Zhu and Davies. Teneo is actively pursuing the recovery of $1.3 billion directly from the founders, alleging that they engaged in reckless financial practices, including taking on excessive leverage with investor funds, following the insolvency of their hedge fund.
Adding to their legal troubles, in September 2023, Singapore’s central bank imposed nine-year prohibition orders against Davies and Zhu for alleged violations of the nation’s securities laws during their tenure at 3AC.
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