The Open Exchange, known as OPNX, launched by the founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC), is set to cease operations this month. Users received an email notification stating, “We would like to inform you that OPNX.com will officially cease operations and shut down in February 2024.” Customers have been advised to settle their positions by Feb. 7 and withdraw their funds by Feb. 14.
OPNX was established by Kyle Davies and Su Zhu, formerly of Three Arrows Capital, and was launched in April 2023 for trading bankruptcy claims. Three Arrows Capital, based in Singapore, faced financial difficulties in 2022 during the broader crypto market downturn.
Davies and Zhu faced regulatory troubles, including nine-year prohibition orders issued by Singapore’s central bank in September 2023 over securities law violations. Su Zhu was apprehended at Changi Airport in Singapore in September. In May, the founders were reprimanded and fined by Dubai’s crypto regulator for operating OPNX as an unregulated exchange.
Teneo, the company’s liquidator, is currently seeking to recover $1.3 billion from the founders, alleging that they leveraged investors’ funds before the firm’s bankruptcy.
In related news, the bankrupt crypto lender Genesis has settled the Security and Exchange Commission’s Earn Lawsuit. The subsidiary of Barry Silbert’s Digital Currency Group agreed to pay a $21 million civil penalty to the SEC, contingent on fully repaying customers and other creditors in its bankruptcy proceedings.
The news of OPNX’s closure led to a nearly 40% drop in the Open Exchange Token (OX), which has since recovered slightly to trade at $0.0085. However, OX is down 89.5% from its all-time high in August 2023. The FLEX token, native to the CoinFlex exchange and part of the OPNX founding team, also experienced a 16% decline to $0.327 and is down 97% from its August all-time high.