OPNX, the crypto exchange established by the founders of the unsuccessful Three Arrows Capital hedge fund, is set to close its doors this month. The exchange, designed for the trading of bankruptcy claims, had been operational for just over a year but faced minimal trading activity since its launch in 2023.
The crypto exchangeshutdown
Customers have been notified to settle their positions by February 7 at 08:00 UTC and to withdraw their funds by February 14. This move comes as a blow to the crypto community, reminiscent of the challenges faced by the industry following the collapse of Three Arrows Capital in 2022.
OPNX, an abbreviation for Open Exchange, was founded by Kyle Davies and Su Zhu, the same individuals behind the ill-fated Three Arrows Capital. The exchange aimed to facilitate the trading of bankruptcy claims but struggled to gain traction in the market. Leslie Lamb, the CEO of OPNX, attributed the lack of liquidity to the absence of internal market makers and a reluctance to involve external market makers.
Since its inception, OPNX has seen minimal trading activity, with only two trades executed across all spot and derivatives markets, totaling a mere $1.26. Lamb acknowledged this challenge and revealed plans to launch a public marketing program in an effort to stimulate liquidity.
Su Zhu’s legal situation
The closure of OPNX raises questions about the sustainability of crypto exchanges, especially those associated with entities that have faced financial turmoil. The aftermath of the Three Arrows Capital collapse has cast a shadow on the industry, with more than $1 billion in assets belonging to Su Zhu, Kyle Davies, and Davies’ wife, Kelly Chen, frozen by a British Virgin Islands court last year.
Su Zhu got into trouble in Singapore, and they arrested him because they say he didn’t help close down Three Arrows Capital properly. Now, OPNX, the exchange created by the same people, is also closing down. This is a big deal because when exchanges like this shut down, it can be tough for people to get their money back. The notice they gave to OPNX customers says they need to quickly settle their deals and take out their money by a certain date.
This situation with Su Zhu and the closing of OPNX is like a pattern we’ve seen before with other crypto exchanges facing issues and eventually shutting down. For regular people who use these platforms, it can be really hard when this happens because getting to your money becomes a problem.
Despite recent crypto market challenges and shutdowns, the overall picture remains positive. The global market cap has increased by 2.25% to $1.65 trillion, while Bitcoin’s dominance stands at 51.13%, with a 2.16% price increase to $43,004.14 in the last day. Although the total market volume decreased by 24.79% to $48.52 billion, the DeFi sector contributes significantly with $5.44 billion.
