Cryptocurrency exchange OPNX, founded by the co-founders of Three Arrows Capital, has made the decision to terminate its operations by February 2024.
Background
In an email announcement, OPNX stated that it would halt all activities on 14th February, urging its customers to settle their positions before 7th February, 8 AM UTC. The exchange emphasized that any remaining open positions after the deadline would be automatically settled.
“OPNX is an exchange founded by the founders of failed hedge fund Three Arrows Capital founder Su Zhu and co-founder Kyle Davies. OPNX was created for the trading of bankruptcy claims.”
The launch of OPNX was overseen by Mark Lamb, the CEO of CoinFLEX. However, legal issues arose when creditors of CoinFLEX, a bankrupt exchange, sued 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 OPNX and unauthorized use of company assets.
- During the bull market, the founders were highly respected, but faced challenges after the collapse of Three Arrows Capital, impacting their reputation.
- Last year, Zhu and Davies concluded a funding round for OPNX, claiming to have secured $25 million in funding. They chose not to disclose the identities of the investors.
- The news of completing the fundraising was shared by DeFi researcher Ignas, indicating that OPNX would take over all assets of CoinFLEX.
“Back then, in his Twitter thread, Ignas confirmed that OPNX – or Open Exchange – will acquire all of CoinFLEX’s assets and that this would include ‘people, tech, and tokens.'”
However, challenges persisted for the founders, as the High Court of Singapore rejected Three Arrows Capital’s plea to dismiss a lawsuit filed by DeFiance Capital. The court ruled in favor of DeFiance Capital, directing the failed hedge fund to pay legal expenses.
As OPNX prepares to cease its operations, the spotlight on Su Zhu and Kyle Davies seems to be waning.
