Crypto Analyzer

Why is Crypto Exchange OPNX Closing Down in 5 Days?

Crypto exchange OPNX is set to close down in just 5 days, notifying users to settle transactions, export their transaction history, and withdraw all funds from the platform within the next 12 days. The exchange was launched in April 2023 as a response to various crypto collapses, allowing victims to leverage their claims in now-defunct crypto firms. However, recent developments have revealed a connection between OPNX and the defunct crypto hedge fund Three Arrows Capital (3AC).

The co-founders of OPNX are also the co-founders of 3AC. Last month, authorities released Su Zhu from prison, while his co-founder Kyle Davies remains elusive. Zhu’s release prompted a fire sale of around $1 million worth of OX tokens, the native token for OPNX. Additionally, the High Court of Singapore rejected 3AC’s bid to dismiss a lawsuit filed by DeFiance Capital, a company that sought autonomy in managing its assets and operations within the 3AC platform.

The controversial background and legal entanglements of OPNX and its founders have likely contributed to the exchange’s impending closure. The connection to a defunct hedge fund, legal disputes, and the sell-off of native tokens all point to underlying issues within the exchange’s operations and leadership.

This development serves as a reminder of the importance of due diligence and cautious evaluation when engaging with crypto exchanges and platforms. Users are advised to stay informed about the entities they interact with and take proactive measures to safeguard their investments.

As the crypto industry continues to evolve, transparency, accountability, and regulatory compliance are becoming increasingly crucial for the long-term stability and trustworthiness of exchanges and other crypto service providers. Investors and traders should always conduct thorough research and exercise caution when engaging with any crypto-related entities.