OPNX Shutting Down Due to Co-Founders’ Legal Troubles
Open Exchange (OPNX), a platform known for trading bankruptcy claims and operating as a crypto exchange, will be shutting down on February 14. This decision comes amidst the legal challenges faced by OPNX co-founders Kyle Davies and Su Zhu, who were also involved in the collapse of Three Arrows Capital (3AC), a crypto hedge fund based in Singapore.
An email sent to OPNX users stated that all positions should be closed by February 7, and all funds should be withdrawn by the shutdown date. Following the announcement, the platform’s native token, OX, experienced a significant 38% drop in value within an hour.
Controversy and Legal Issues Surrounding 3AC and OPNX
The collapse of 3AC in June 2022 caused concerns in the crypto industry. OPNX offered a unique service by allowing users to trade creditor claims of bankrupt crypto companies, which became more relevant as insolvencies increased.
Zhu and Davies faced scrutiny and legal actions, including being subpoenaed via social media messages by Teneo, the firm handling 3AC’s asset liquidation. The founders’ initial disappearance and alleged concealment of their whereabouts complicated matters. Singapore’s central bank issued nine-year prohibition orders against Davies and Zhu, while Zhu was sentenced to four months in prison for non-cooperation with bankruptcy proceedings. Additionally, a British Virgin Islands court froze over $1 billion in assets tied to Zhu, Davies, and Davies’ wife.
Hot Take: OPNX’s Closure Reflects Founders’ Legal Issues
OPNX’s decision to shut down is a consequence of the legal troubles faced by its co-founders, Su Zhu and Kyle Davies, stemming from the collapse of Three Arrows Capital. This development has caused shockwaves in the crypto community, impacting the value of OPNX’s native token. The controversies and legal challenges surrounding 3AC and OPNX underline the regulatory risks involved in the crypto industry. It serves as a reminder of the importance of transparent and compliant operations to maintain trust and stability in the market.
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