OPNX, a unique hybrid platform that combined bankruptcy claim trading and cryptocurrencies, has officially announced its impending closure.
Launched in April 2023 by Su Zhu and Kyle Davies, co-founders of the now-defunct Three Arrows Capital (3AC) hedge fund, OPNX was set to revolutionize the industry.
However, following a tumultuous year, the platform is set to cease all operations by February 14, 2024.
Customers of OPNX received an email notification outlining the shutdown plan. They were urged to close all open positions by February 7 and withdraw their funds by February 14, as the platform would halt all withdrawals after the deadline.
The email expressed gratitude to the OPNX community, promising an orderly closure for all users.
Su Zhu and Kyle Davies had ventured into OPNX as a new endeavor after the bankruptcy of 3AC, a $10 billion crypto hedge fund.
OPNX was distinctive in its offering, allowing traders to engage in both cryptocurrency trading and the trading of claims from bankrupt crypto platforms, including 3AC.
However, Zhu and Davies found themselves entangled in legal issues stemming from the collapse of 3AC.
They had gone off the grid, prompting Teneo, the firm tasked with liquidating 3AC’s assets, to issue subpoenas through X (formerly Twitter).
Teneo is currently pursuing a staggering $1.3 billion from the two co-founders.
Adding to their troubles, over $1.1 billion in assets belonging to Zhu, Davies, and Davies’ wife, Kelly Chen, were frozen by a British Virgin Islands court order.
Singapore authorities even arrested Su Zhu last year due to alleged non-cooperation with the liquidation process.
The demise of OPNX marks the end of a promising but ultimately troubled venture in the cryptocurrency and bankruptcy claim trading space.
The closure is a poignant reminder of the challenges and legal ramifications that can arise within the crypto industry, especially when intertwined with high-stakes financial ventures like hedge funds.