3AC Co-Founder Launches New Platform for Trading Bankruptcy Claims

Co-founder of bankrupt hedge fund Three Arrows Capital Su Zhu announced that the waitlist is open for OPNX, a new platform to trade claims for funds frozen on bankrupt exchanges.

The new platform, called OPNX, has opened its whitelist to claimants from bankrupt lenders Genesis, Celsius, and BlockFi, and defunct Bitcoin exchange Mt. Gox.

3AC’s Zhu Wants OPNX to be “Ideal Combo of CeFi + DeFi”

Zhu said the idea for OPNX came from conversations with Coinflex CEO Mark Lamb. Lamb allegedly built Coinflex according to a vision of “the ideal combo of cefi + defi” after the collapse of 3AC.

Zhu added that the need for a killer UI following the collapse of FTX, the number of traders with funds frozen as a result of bankruptcies, and the “wish to help investors build a safer and better future” also influenced the platform’s founding.

After launching as a claims and derivatives marketplace, Zhu added that the platform would become a transparent platform fulfilling the role of a fully decentralized custodian, with plans to expand into stocks and foreign exchange. According to Zhu, 3AC creditors have approved the project.

OPNX is Zhu’s first venture after the collapse of Three Arrows Capital, a hedge fund he co-founded with Kyle Davies. Based on Zhu’s supercycle thesis, the company borrowed to make leveraged bets on rising crypto prices. The supercycle thesis posits that crypto prices would continue increasing with increasing adoption without a near-term bearish pivot. However, falling crypto prices caused 3AC’s margin positions to liquidate at key lenders. Creditor Deribit later pushed for the firm’s liquidation.

OPNX’s native token, FLEX, surged almost 80% after the announcement to $2.095 before falling back to about $1.10.

After the collapse of 3AC in July 2022, both founders appeared uncooperative to 3AC’s liquidators despite being active on Twitter. Following several attempts at contacting the founders through other channels, liquidators received approval to subpoena Davies on Twitter.

After Davies failed to respond, liquidators filed a court document to compel Davies to respond by March 16, 2023.

New developments in the FTX fraud case suggest that Sam Bankman-Fried is tampering with witnesses using messaging services.

A U.S. District Judge has extended a ban to prevent the former FTX CEO from using encrypted messaging services to tamper with witnesses in an ongoing case against Bankman-Fried. The judge had temporarily banned Bankman-Fried from contacting former or current employees of FTX or its affiliate market maker Alameda Research. The judge said that he is more concerned about witness tampering than Bankman-Fried’s convenience.

Bankman-Fried faces eight criminal charges related to the misappropriation of FTX customer funds.

His lawyers have asked prosecutors to allow him to use WhatsApp, Zoom, and text on a device with monitoring software.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *