OPNX to Shut Down Amid Three Arrows Co-Founders’ Legal Troubles

February 3, 2024 | by


OPNX, a unique trading platform that allowed users to trade bankruptcy claims alongside crypto exchange operations, is set to shut down next month. The decision comes as co-founders Su Zhu and Kyle Davies face legal troubles stemming from their involvement in the collapse of Three Arrows Capital, a Singapore-based crypto hedge fund. In an email sent to OPNX users, the exchange urged clients to close all positions and withdraw funds before the shutdown date of February 14. The announcement has sent shockwaves through the crypto community, with the platform’s native OX token experiencing a significant drop in value. The downfall of Three Arrows Capital and the subsequent launch of OPNX have been marked by controversy and legal challenges, including legal actions and prohibition orders against Zhu and Davies. Despite these troubles, it remains to be seen if the co-founders will attempt to launch another project in the future.

OPNX to Shut Down Amid Three Arrows Co-Founders’ Legal Troubles

OPNX to Shut Down Amid Three Arrows Co-Founders Legal Troubles

Background and Announcement of Closure

Open Exchange (OPNX), a platform unique for trading bankruptcy claims alongside its crypto exchange operations, has announced it will cease all activities by February 14. This decision comes after a tumultuous period for the co-founders, Su Zhu and Kyle Davies, who are also known for their involvement in the collapse of the Singapore-based crypto hedge fund, Three Arrows Capital (3AC).

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According to an email sent to OPNX users, the exchange has urged its clientele to close all positions by February 7 and to ensure that all funds are withdrawn by the shutdown date. This news has sent shockwaves through the crypto community, with the platform’s native OX token experiencing a precipitous 38% drop in value within an hour of the announcement.

Impact on OX Token Value

The announcement of OPNX’s closure has had an immediate negative impact on the value of the OX token. Within an hour of the announcement, the token’s value dropped by 38%, reflecting the market’s concern and uncertainty surrounding the platform’s future. This significant decline is indicative of the community’s lack of confidence in the stability of OPNX and the potential impact on their investments.

The market reaction to this announcement has been mixed. While some investors and traders have expressed disappointment and frustration, others have viewed this as an opportunity to buy OX tokens at a lower price, hoping for a potential rebound if the situation improves. The community response has been varied, with debates and discussions circulating about the implications of OPNX’s closure and the potential long-term effects on Three Arrows Co-Founders Zhu and Davies.

Establishment of OPNX

OPNX was established after the bankruptcy of Three Arrows Capital (3AC), a once-prominent $10 billion hedge fund that collapsed in June 2022 during the broader crypto market downturn. OPNX offered a novel approach by allowing users to trade creditor claims of bankrupt crypto companies, catering to the increasing number of insolvencies in the industry.

The establishment of OPNX was seen as a possible redemption for Zhu and Davies following the downfall of 3AC. It provided them with an opportunity to continue their involvement in the crypto industry and potentially recover from the reputational damage caused by the collapse of their previous venture. OPNX’s unique offering attracted significant attention and interest, positioning itself as a platform with relevance in the crypto industry.

Controversy and Legal Challenges for Zhu and Davies

The collapse of Three Arrows Capital (3AC) marked a significant controversy and brought about legal challenges for Su Zhu and Kyle Davies. The duo faced intense scrutiny and legal actions, which significantly impacted their standing in the crypto community and their ability to operate in the industry.

As 3AC’s liquidators, the founders were subpoenaed via messages on the social media platform X by Teneo, the firm tasked with liquidating 3AC’s assets. This dramatic development highlighted the complexity of the situation and the founders’ apparent attempt to conceal their whereabouts. The lack of cooperation and alleged concealment further intensified legal complications and added to the controversies surrounding Zhu and Davies.

Subpoenaed and Concealment of Whereabouts

The founders of Three Arrows Capital (3AC), Su Zhu and Kyle Davies, were subpoenaed via messages on the social media platform X by Teneo, the firm responsible for liquidating 3AC’s assets. This unconventional method of service added further drama to their legal troubles. However, initial attempts to contact Zhu and Davies were met with their alleged disappearance and concealment of their whereabouts.

The founders’ elusive behavior complicated the legal process and raised suspicions within the crypto community. The concealment of their whereabouts led to further speculations and skepticism regarding their intentions, credibility, and commitment to addressing the legal challenges they faced.

Prohibition Orders and Arrest

In September 2023, Singapore’s central bank issued nine-year prohibition orders against Su Zhu and Kyle Davies for alleged violations of the country’s securities laws related to their operations at Three Arrows Capital (3AC). These prohibition orders effectively barred Zhu and Davies from engaging in any financial activities within Singapore’s jurisdiction for the specified period.

The legal challenges intensified when Su Zhu was apprehended at Singapore airport and subsequently sentenced to four months in prison for failing to cooperate with bankruptcy proceedings. This arrest showcased the severity and consequences of the legal issues faced by the co-founders of OPNX and their previous involvement with 3AC.

Freezing of Assets

The legal proceedings against Zhu and Davies led to the involvement of the British Virgin Islands court. The court issued a freeze on more than $1 billion in assets tied to Zhu, Davies, and Davies’ wife, Kelly Chen. This significant asset freeze underscored the extent of the legal repercussions faced by the co-founders and signaled a major setback for their financial interests.

The freezing of assets further complicated the legal proceedings and added to the challenges Zhu and Davies had to navigate. With their assets locked and legal battles ongoing, the co-founders’ ability to pursue future projects or recover from their current situation faced significant obstacles.


Speculations on Future Projects

Despite the legal troubles and the closure of OPNX, there are speculations within the crypto community about the possibility of Su Zhu and Kyle Davies attempting to launch another project in the future. Some believe that, given their experience and knowledge in the industry, they may be able to bounce back and establish a new venture.

Opinions within the community are divided, with some expressing skepticism and distrust due to the controversies and legal challenges surrounding Zhu and Davies. Others have adopted a more hopeful perspective, acknowledging the potential for redemption and resilience in the entrepreneurial spirit of the co-founders.


The closure of OPNX, driven by the legal troubles faced by co-founders Su Zhu and Kyle Davies, marks a significant turning point for the platform and its community. The announcement had an immediate impact on the value of the OX token, highlighting the investor’s concerns and uncertainties. The establishment of OPNX was seen as a potential redemption for Zhu and Davies, but the subsequent legal challenges and controversies further complicated their situation.

The legal actions, subpoenas, concealment of whereabouts, prohibition orders, arrests, and freezing of assets showcased the magnitude of the legal troubles faced by the co-founders. The future projects of Zhu and Davies remain uncertain, with speculations and debates circulating within the crypto community.

The OPNX closure and the prolonged legal battles will undoubtedly have long-term effects on the reputation and prospects of Su Zhu and Kyle Davies. Their ability to rebound and regain trust within the community will depend on their actions moving forward and their ability to address the legal challenges they face. Only time will tell how these events will shape the trajectory of their futures in the crypto industry.


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