Open Exchange (OPNX), the cryptocurrency derivatives and bankruptcy claims platform founded by Su Zhu and Kyle Davies, the duo behind the now-bankrupt hedge fund Three Arrows Capital (3AC), will shut down this February.
In an email sent to customers, OPNX advised users on the necessary actions to take before the exchange closed down, which included settling all positions by Feb. 7, 2024, and withdrawing all their assets from the platform by Feb. 14, 2024.
Reasons for the closure were not mentioned in the announcement.
“We are deeply thankful to each member of the OPNX community for their dedication and trust. As we conclude this chapter, we cherish the experiences shared and look ahead with gratitude.”
OPNX’s email to users
OPNX links and troubled past
OPNX was established by Su Zhu and Kyle Davis in conjunction with CoinFLEX, and launched in April 2023. Notably, Zhu and Kyle are the co-founders of the collapsed crypto hedge fund 3AC, which filed for bankruptcy in 2022.
The newly founded crypto exchange, however, was not without controversy, due to the founders behind the platform.
Shortly after going live, Zhu, Davies, and other OPNX founders were reprimanded by Dubai’s Virtual Asset Regulatory Authority (VARA) for illegally promoting the platform in the emirate. VARA later fined OPNX $2.7 million for violating market rules.
With OPNX looking to close shop, it shows another failed venture by Zhu and Davies, after 3AC’s crash. The duo were slammed with a nine-year ban by Singaporean authorities following the violation of securities laws. Zhu, who was arrested in September 2023 in Singapore, was released in December 2023.
The price of OX, OPNX’s native token, crashed to $0.0068 following the news of its impending closure. While the token has slightly recovered and is trading at $0.0094 according to Coingecko as of press time, OX is still down nearly 90% from its peak of $0.08 in August 2023.