The cryptocurrency exchange OPNX, co-founded by the individuals behind Three Arrows Capital, has declared its decision to “officially cease operations and shut down in February 2024.”
In an email announcement, OPNX specified that it will terminate all of its operations on February 14. The exchange has requested its customers to settle their positions before 7 February, 8 AM UTC, cautioning that “after this deadline, any remaining open positions will be automatically settled.”
OPNX was established by Su Zhu, the founder of the unsuccessful hedge fund Three Arrows Capital, along with co-founder Kyle Davies. The platform was designed primarily for the trading of bankruptcy claims.
Doomed From The Start?
The launch of OPNX was overseen by Mark Lamb, who is also the CEO of CoinFLEX. However, in October, creditors of CoinFLEX, an exchange that had gone bankrupt, initiated legal action against Mark Lamb and early investor Roger Ver, also known as Bitcoin Jesus. The lawsuit alleged a breach of fiduciary duty in connection with the launch of the new exchange OPNX and unauthorized utilization of company assets.
Three Arrows Capital Collapse
During the cryptocurrency bull market, the founders of Three Arrows Capital were regarded as influential figures. However, following the collapse of Three Arrows Capital, they faced significant challenges, particularly with their reputations in disarray.
Last year, Su Zhu and Kyle Davies, the founders of Three Arrows Capital, announced the completion of a funding round for the OPNX exchange, claiming to have raised $25 million. However, they reportedly kept the identities of the investors confidential.
The news about the successful fundraising for the new exchange was shared in a Twitter thread by Ignas, a well-known community member and DeFi researcher. Kyle Davies had personally reached out to Ignas to confirm this information. In the thread, Ignas revealed that OPNX, also known as Open Exchange, would acquire all of CoinFLEX’s assets, including personnel, technology, and tokens. He mentioned that FLEX would serve as the new exchange’s native token.
Recently, the High Court of Singapore rejected a request from the now-defunct Three Arrows Capital to dismiss a lawsuit filed by DeFiance Capital against the fund. In the latest court hearing, Judge Chua Lee Ming ruled in favor of DeFiance Capital in their $140 million dispute with Three Arrows Capital. Additionally, the court ordered the failed hedge fund to pay SG$15,000 and legal expenses to DeFiance Capital.
The return to the spotlight for Su Zhu and Kyle Davies has been short-lived, as OPNX prepares to cease its operations.
