OPNX Cryptocurrency Exchange and Bankruptcy Claims Platform to Cease Operations
OPNX, a cryptocurrency exchange and bankruptcy claims platform co-founded by the individuals behind the failed hedge fund Three Arrows Capital (3AC), has announced it will cease operations and shut down by February 14, 2024. The closure comes as a result of regulatory challenges and financial penalties that have impacted the platform’s ability to continue operating.
OPNX had advised its users to settle their positions and withdraw their funds by February 7 and February 14, respectively. After February 14, the withdrawal functionality will be disabled, marking the end of OPNX’s operations. The platform’s goal was to facilitate the trading of creditor claims of bankrupt crypto companies.
Just one week before the announcement, Su Zhu, co-founder of the collapsed Three Arrows Capital, stated that they would continue to promote the exchange OPNX in Hong Kong. OPNX had registered an office in Hong Kong’s central business district in May of the previous year. However, the new virtual asset regulatory rules implemented in Hong Kong in June 2023 may have impacted the platform’s plans.
The closure of OPNX is attributed to a series of regulatory challenges and financial penalties that have significantly affected its operational capacity and financial stability. Despite obtaining a Virtual Asset Service Provider (VASP) license in Lithuania, OPNX faced setbacks due to its association with controversial figures and heavy penalties from regulatory authorities. These penalties have resulted in a significant financial burden for the platform.
OPNX’s ties to Su Zhu and Kyle Davies, co-founders of Three Arrows Capital, have attracted increased scrutiny and complicated its regulatory landscape. The platform’s user base is strongly advised to adhere to the communicated deadlines for settling positions and withdrawing funds to avoid potential losses. The structured closure process aims to ensure a secure and orderly exit for OPNX’s users during the shutdown.
The closure of OPNX serves as a reminder of the challenges and regulatory pressures faced by cryptocurrency platforms. It emphasizes the need for robust structures to support the growth and sustainability of the digital finance ecosystem. The volatility of the crypto market and the importance of regulatory compliance and operational transparency are underscored by the demise of OPNX.
Sources: Coindesk
