OPNX, the crypto bankruptcy claims platform launched by the co-founders of Three Arrows Capital (3AC), has announced its official closure and cessation of all operations by February 14. In an email sent to exchange users, OPNX urged them to settle all positions by February 7 and withdraw their funds from the platform by February 14, as withdrawal functionality will be disabled after that date.
OPNX, also known as Open Exchange, is a hybrid platform that functions as both a bankruptcy claims platform and a crypto exchange. It allows users to trade creditor claims of bankrupt crypto companies. However, the announcement of its closure caused the price of OPNX’s native OX token to plummet by 38% in less than an hour, according to CoinGecko data.
The founders of OPNX, Su Zhu and Kyle Davies, established the exchange after their $10 billion Singapore-based crypto hedge fund, Three Arrows Capital, failed and folded in June 2022. Following the collapse of their hedge fund, Zhu and Davies went into hiding, prompting Teneo, the firm responsible for liquidating 3AC’s assets, to subpoena them via messages on X due to their concealment of their physical whereabouts.
The closure of OPNX further complicates the situation for Zhu and Davies. Teneo is currently pursuing the recovery of $1.3 billion directly from the founders, alleging that they engaged in significant leverage with investor funds after the hedge fund became insolvent.
In September 2023, Singapore’s central bank issued nine-year prohibition orders against Davies and Zhu for alleged violations of the country’s securities laws at 3AC.
As for the future of Bitcoin payments, there are still big questions regarding their potential comeback.