OPNX Exchange Announces Closure Amidst 3AC Founders' Legal Woes

Open Exchange (OPNX), a platform created by 3AC's Kyle Davies and Su Zhu, is set to cease operations this month, as communicated to users through an official email. 

The exchange instructed users to settle positions by February 7 and withdraw funds by February 14. Notably, all withdrawals will be halted after the specified deadline.

OPNX, an acronym for Open Exchange, served as a unique hybrid platform, allowing users to trade creditor claims of bankrupt crypto companies. According to co-founder Su Zhu, OPNX is closing because the bankruptcy case of failed crypto exchange FTX has reached "recovery.”

“The FTX recovery marks the end of crypto claims estates. The OX community will be focusing on Ox.Fun now, and wish to congratulate the FTX estate holders on their full recovery,” Zhu said in a Telegram statement.

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Founders' Troubles Escalate

Kyle Davies and Su Zhu formed Three Arrows Capital, which collapsed in 2022 during the crypto market turmoil. After the collapse, the founders faced legal repercussions, with Singapore's central bank issuing nine-year prohibition orders over securities law violations in September 2023.

Su Zhu was arrested at Changi Airport in Singapore in September, as reported by the company's liquidator, Teneo. The founders were also fined by Dubai's crypto regulator for operating OPNX as an unregulated exchange in May. 

Teneo is actively seeking to recover $1.3 billion directly from the founders, alleging the leveraging of investors' funds before the firm's bankruptcy.

The news of OPNX's closure had a notable impact on associated tokens. Open Exchange Token (OX) experienced a nearly 40% decline, subsequently recovering slightly to trade at $0.0085 at the time of reporting. However, this marks an 89.5% decrease from its all-time high of $0.0813 in August 2023.