The Open Exchange (OPNX) has informed its users via email that it is shutting down operations on February 14th.
The company touted itself as “a solution and home for those harmed by crypto crises” and was launched by the co-founders of the collapsed Three Arrows Capital.
End of the Line for OPNX: Closure Scheduled for Valentine’s Day
OPNX urged its users to settle their positions by February 7 and remove their cash from the platform before February 14, after which it would deactivate all withdrawal features.
OPNX Exchange Is Getting Shut Down, Here's Something Very Important You Can Learn
#OPNX, a centralized exchange founded by 3 Arrows Capital Founders, Will Cease Its Operations.
OPNX was started last year, and the trouble started when one of its founders, @zhusu, got… pic.twitter.com/wvlmo76IM8— Wise Advice (@wiseadvicesumit) February 2, 2024
Su Zhu and Kyle Davies launched OPNX following the crash of 3AC, their once-popular crypto hedge fund. However, both Zhu and Davies disappeared from public view following 3AC’s collapse. Interestingly, Teneo, the company handling 3AC’s asset liquidation subpoenaed them on X due to their mysterious whereabouts.
Teneo is reportedly pursuing a direct recovery of $1.3 billion from the founders, alleging that the duo took on substantial leverage using investor funds. Zhu and Davies are also facing significant problems in Singapore for breaching the nation’s securities regulations.
Why is the Exchange Shutting Down?
OPNX was led by CEO Mark Lamb, who had previously worked with CoinFlex. CoinFlex creditors are reportedly suing Lamb. They claim the switch from CoinFLEX to OPNX was unauthorized.
⚖️ Creditors of Struggling Crypto Exchange CoinFLEX Sue CEO and Seek Funds from ‘Bitcoin Jesus’ Roger Ver
Creditors of CoinFLEX sue CEO Mark Lamb and Roger Ver, alleging breach of unauthorized use of company assets.#CryptoNews https://t.co/kwlamOHI6a
— Cryptonews.com (@cryptonews) October 26, 2023
Shortly before announcing its closure, OPNX attempted and failed to purchase the defunct cryptocurrency lender Hodlnaut. Surprisingly, the exchange announced in November that it had secured a license to operate in Lithuania, making its closure a big surprise to its community. Until now, there is no formal explanation for its decision to shut down.
Some of the platform’s users expressed shock at the announcement, and some have proposed possible reasons for the closure. One of the theories states that the founders have turned their focus to their new derivative exchange.
OPNX, the exchange set up by the founders of failed cryptocurrency hedge fund Three Arrows Capital, is shutting down this month, according to a notice on the company's website.
Customers were advised to settle their positions by Feb. 7 at 08:00 UTC and withdraw their money by… pic.twitter.com/QHoEZGdogJ
— ICO Drops (@ICODrops) February 2, 2024
The native token of the OPNX exchange, OX, collapsed shortly after the news spread on X. OX slumped 38% from $0.01 to $0.006 in less than an hour.
