February 2, 2024 – The cryptocurrency community faces another setback as Open Exchange (OPNX), the derivative and claims trading platform, announces its closure. Founded by Su Zhu and Kyle Davies of the defunct Three Arrows Capital (3AC), OPNX’s shutdown marks the end of another chapter for the controversial figures in the crypto space.

Final Curtains for OPNX

In a recent communication to its users, OPNX outlined the timeline for its shutdown, urging customers to settle all positions by February 7, 2024, and to withdraw all funds by February 14, 2024. The announcement, however, left users in the dark about the reasons leading to this decision. The statement from OPNX expressed gratitude to its community, highlighting the shared experiences despite the platform’s short-lived journey.

The Controversial Legacy of Zhu and Davies

The inception of OPNX in April 2023 came amidst the reverberating shockwaves of 3AC’s collapse. Zhu and Davies, both co-founders of 3AC, ventured into this new project with the backing of CoinFLEX. Yet, the founders’ past was a harbinger of scrutiny and regulatory hurdles.

Regulatory Repercussions

Dubai’s Virtual Asset Regulatory Authority (VARA) was quick to censure OPNX founders for unauthorized promotional activities. This led to a hefty $2.7 million fine for market rule violations. In Singapore, the founders faced a nine-year prohibition from the authorities for securities law infringements. Zhu’s arrest in Singapore in September 2023, followed by his release in December, added to the founders’ legal woes.

Market Impact and OX Token’s Plunge

The announcement of OPNX’s closure sent its native token, OX, into a freefall, dropping to a paltry $0.0068. Although the token saw a marginal recovery to $0.0094, as indicated by Coingecko, it remains a staggering 90% below its August 2023 peak value of $0.08.

Looking Ahead

As the crypto market continues to navigate through turbulent waters, the end of OPNX serves as a reminder of the volatile and often unpredictable nature of cryptocurrency ventures. The industry watches as Zhu and Davies conclude this chapter, while the community reflects on the lessons learned from their successive failures.