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.
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
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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