Crypto bankruptcy claims platform OPNX — launched by the co-founders of failed hedge fund Three Arrows Capital (3AC) — has announced that it will officially cease all operations and shut down by Feb. 14.
In an email to exchange users viewed by Cointelegraph, OPNX “strongly advised” its users to settle all positions by Feb. 7 and withdraw their funds from the platform by Feb. 14. Following this date, all withdrawal functionality will be disabled.
“We would like to inform you that OPNX.com will officially cease operations and shut down in February 2024.”
OPNX says withdrawal functionality will be disabled for all users on Feb. 14. Source: OPNX
OPNX, short for Open Exchange, is a hybrid bankruptcy claims platform and crypto exchange that allows users to trade creditor claims of bankrupt crypto companies.
The price of OPNX’s native OX token plunged following the announcement, plummeting 38% from a price of $0.01 to $0.006 in less than an hour, per CoinGecko data.
The price of OPNX’s native OX token crashed 37% after the exchange notified users of its closure. Source: CoinGecko
Su Zhu and co-founder Kyle Davies founded the exchange following the bankruptcy of their $10 billion Singapore-based crypto hedge fund Three Arrows Capital, which folded in June 2022.
Shortly after their hedge fund collapsed, Zhu and Davies disappeared. Teneo, the firm in charge of liquidating 3AC’s assets, was forced to subpoena the pair via messages on X due to their pair concealing details of their respective physical whereabouts.
The closure of OPNX only adds to the pair’s woes. Teneo is currently seeking to recover $1.3 billion directly from the founders, claiming that Zhu and Davies took on significant amounts of leverage with investor funds after their hedge fund became insolvent.
In September 2023, Singapore’s central bank issued nine-year prohibition orders to Davies and Zhu over alleged violations of the country’s securities laws at 3AC.