OPNX Announces Cease of Operations Following Legal Repercussions
OPNX, a platform renowned for its unique offering of trading bankruptcy claims alongside crypto exchange operations, has made the decision to cease all activities by February 14th. This announcement comes as co-founders Su Zhu and Kyle Davies grapple with the legal consequences resulting from the failure of their previous venture, Three Arrows Capital.
OPNX: A Platform Marked by Controversy
The closure of OPNX follows a tumultuous period for its co-founders, Kyle Davies and Su Zhu, who gained notoriety due to their involvement in the collapse of Singapore-based crypto hedge fund, Three Arrows Capital (3AC). This platform, which allowed users to trade creditor claims of bankrupt crypto companies, became increasingly relevant as the industry faced a growing number of insolvencies.
Withdrawal Deadline and Market Impact
OPNX has notified its users via email, urging them to close all positions by February 7th and withdraw all funds by the shutdown date of February 14th. After this date, the withdrawal functionality will be disabled. The announcement of OPNX's closure sent shockwaves through the crypto community, resulting in a rapid 38% decrease in value for the platform's native OX token within just one hour.
The Rise and Fall of 3AC
OPNX came into existence following the bankruptcy of Three Arrows Capital (3AC), a once-prominent $10 billion hedge fund that collapsed in June 2022 amidst the broader downturn in the crypto market. The introduction of OPNX aimed to provide a novel approach by facilitating the trading of creditor claims, catering to the increasing number of insolvencies within the industry.
Controversy and Legal Challenges for Zhu and Davies
The downfall of 3AC and the subsequent launch of OPNX were accompanied by controversy and legal complications for Su Zhu and Kyle Davies. The duo faced intense scrutiny and legal actions, including a dramatic moment when they were subpoenaed via messages on the social media platform X by Teneo, the firm responsible for liquidating 3AC's assets. The founders' initial disappearance and alleged attempts to conceal their whereabouts further complicated the legal proceedings.
Legal Consequences and Prohibition Orders
Adding to the complexity of the situation, Singapore's central bank issued nine-year prohibition orders against Davies and Zhu in September 2023. These orders were based on alleged violations of the country's securities laws in relation to their operations at 3AC. Su Zhu was apprehended at Singapore airport and subsequently sentenced to four months in prison for failing to cooperate with bankruptcy proceedings. Moreover, a court in the British Virgin Islands froze over $1 billion in assets linked to Zhu, Davies, and Davies' wife, Kelly Chen, as the legal proceedings against them unfolded.
What does the future hold for Su Zhu and Kyle Davies? Feel free to share your thoughts and opinions on this matter in the comments section below.
CFTC
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
How To
The best place online to buy silver and gold
First, understand the basics of gold. Gold is a precious metallic similar to Platinum. It’s very rare and is used as money because of its durability and resistance to corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They cannot be used in currency exchanges. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. Every dollar spent on gold purchases, the buyer receives one gram of gold.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. There are a few options if you wish to buy gold directly from a dealer. First, go to your local coin shop. You could also look into eBay or other reputable websites. You can also purchase gold through private online sellers.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers charge a 10% to 15% commission per transaction. A private seller will usually return less money than a coin shop and eBay. This option is often a great choice for investing gold as it allows you more control over its price.
An alternative option to buying gold is to buy physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. Physical gold must be kept safe in an impassible container, such as a vault.
A bank or pawnshop can help you buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks charge higher interest rates than those offered by pawn shops.
The final option is to ask someone to buy your gold! Selling gold is simple too. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
—————————————————————————————————————————————————————————————-
By: David Sencil
Title: The End of OPNX: A Closure to the Journey of Zhu and Davies, Co-Founders of Three Arrows
Sourced From: news.bitcoin.com/end-of-the-line-for-opnx-built-by-three-arrows-co-founders-zhu-and-davies/
Published Date: Fri, 02 Feb 2024 19:30:26 +0000
