Crypto exchange OPNX launched by Three Arrows Capital co-founders has announced it will “officially cease operations and shut down in February 2024.”
The exchange said in an email it will cease all operations on 14 February. OPNX is asking customers to settle positions before 7 February, 8 AM UTC, adding that “after this deadline, any remaining open positions will 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.
Doomed From The Start?
The launch of OPNX was headed by CoinFLEX CEO Mark Lamb. But in October creditors of CoinFLEX, a bankrupt exchange, sued Lamb and early investor Roger Ver, aka Bitcoin Jesus, alleging a breach of fiduciary duty over the new exchange OPNX launch and unauthorized use of company assets.
Three Arrows Capital Collapse
During the bull market, the founders were seen as influential figures but following Three Arrows Capital’s collapse they faced challenges, especially with their reputation in tatters.
Last year, Zhu and Davies, completed a funding round for OPNX exchange claiming to have raised $25m, but reportedly declined to say who the investors are.
The news that fundraising for the new exchange has been completed was shared in a Twitter thread by a popular community member and DeFi researcher Ignas, who said Kyle Davies had reached out to him and confirmed the news.
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.” He added that FLEX would be the new exchange’s own token.
On Wednesday, it emerged the High Court of Singapore turned down a plea from the now-defunct Three Arrows Capital to dismiss DeFiance Capital’s lawsuit filed against the fund.
In the recent hearing, Judge Chua Lee Ming gave greenlight to Defiance Capital in its $140 million dispute with Three Arrows Capital. Further, the court ordered the failed hedge fund to pay SG$15,000 and legal disbursements to DeFiance Capital.
Zhu and Davies’ return to the spotlight has been short-lived as OPNX prepares to cease operations.