Three Arrows’ OPNX Announces Shutdown

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OPNX, a cryptocurrency exchange and bankruptcy filing platform, will cease operations by February 14, 2024 due to regulatory challenges and financial penalties.

OPNX, a cryptocurrency exchange and bankruptcy claims platform co-founded by the people behind failed hedge fund Three Arrows Capital (3AC) has announced that it will cease operations and be closed until February 14, 2024. The announcement comes after the platform advised its users to settle positions until February 7th and ensure all funds are withdrawn by February 14th, after which the withdrawal feature will be disabled. This decision marks the end of OPNX’s operations, which were intended to facilitate the trading of creditors’ claims of bankrupt crypto companies.​​​​​​

Just a week before the announcement, Su Ju, co-founder of the collapsed Three Arrows Capital, said it would continued to encourage exchange OPNX in Hong Kong according to SCMP. OPNX registered an office in Hong Kong’s central business district in May last year, with former CoinFlex CEO Mark Lamb listed as a director. Hong Kong’s new virtual asset regulatory rules came into effect in June 2023. As a financial hub, Hong Kong now welcomes regulated crypto exchanges.

The closure of OPNX was rooted in a series of regulatory challenges and financial penalties that significantly affected its operational capacity and financial stability. Despite efforts to address these issues, including securing a virtual asset service provider (VASP) license in Lithuania, OPNX has faced setbacks due to its association with controversial figures and heavy penalties from regulatory authorities, resulting in a significant financial burden. Notably, the platform’s ties to Su Ju and Kyle Davis, co-founders of Three Arrows Capital, have particularly cast a shadow over its operations, attracting increased scrutiny and complicating its regulatory landscape.

The platform’s user base is strongly advised to adhere to the notified deadlines for settling positions and withdrawing funds to avoid potential losses. This structured shutdown process underscores OPNX’s commitment to providing a safe and orderly exit for its users during its shutdown. The demise of OPNX highlights the volatile nature of the crypto market and the critical importance of regulatory compliance and operational transparency for platforms operating in this space.

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For the broader cryptocurrency industry, the closure of OPNX serves as a poignant reminder of the complex challenges and regulatory pressures that platforms can face. It also highlights the need for robust structures to support the growth and sustainability of the digital finance ecosystem.

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