The Open Exchange, a self-proclaimed “heaven for those affected by the crypto-crisis,” is closing and preparing to face its own crypto crisis, the company announced in an email to clients today. As for the reasons behind this sudden shutdown, well, no reasons were given from their side.
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As per an email addressed to the “OPNX Community,” the OPNX.com website “officially conclude its operations and shut down by February 2024.”
“We aim for an orderly close for all our users,” the email continued, accompanied by a checklist of recommended actions for customers: settle pending positions by February 7, withdraw funds, and export data by February 14. After this date, all withdrawal functions will be disabled.
History of 3AC and The Open Exchange
The OPNX crypto-bankruptcy claims platform, launched by the co-founders of the bankrupt hedge fund Three Arrows Capital (3AC), turned out to be a crypto-catastrophe. Investor losses reached over 3.5 billion dollars, making it one of the biggest financial losses in hedge fund history.
Shortly after the firm collapsed, Zhu and Davies disappeared into the financial ether. Teneo, the company in charge of liquidating 3AC’s assets, was forced to summon the couple to court through messages on X since their physical whereabouts remained unknown to the relevant authorities.
And even though their physical location remained a mystery, the dynamic duo was digitally busy. They launched a brand-new platform for cryptocurrency exchange and bankruptcy claims review, named the Open Exchange.
The concept of OPNX originated from the scandal-ridden and failure-filled cryptocurrency realm, where clients found themselves stranded by crypto crashes. They could either sell their pending recovery requests or use them as crypto collateral. It was co-founded by Su Zhu and Kyle Davies, the founders of the now-defunct investment firm known as Three Arrows Capital.
Founders who reach great heights and then fall extract the most crucial lessons and, consequently, can make the biggest impact.Our responsibility is to use the wisdom gained to construct a more reliable, open, and transparent financial world for everyone.
The exchange was headed by CEO Mark Lamb, a pro from CoinFlex, and launched with its own FLEX token. Later on, the company switched from FLEX to the OX token, calling it the “OPNX token for fees, staking, and governance.”
What will the Closure of OPNX Lead to?
Closing down OPNX only compounds the duo’s troubles. Teneo is currently attempting to reclaim $1.3 billion directly from the founders, arguing that Zhu and Davies took on significant amounts of leverage from investor funds after their hedge fund became insolvent.
The price of OPNX’s own OX token plummeted 38% from $0.01 to $0.006 in less than an hour.
In September 2023, the Singaporean central bank issued a decree banning Davies and Zhu from financial operations for a whopping nine years, citing alleged violations of the country’s securities laws at 3AC.
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Zhu was arrested in Singapore in September 2023, as he was caught trying to disappear from the country after the local court sentenced him to four months in prison for refusing to join the investigation into the 3AC liquidation.
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