Crypto Exchange OPNX To Shut Down As FTX Bankruptcy Claims Reach 'Recovery'

OPNX, the exchange that offers trading for bankruptcy claims, said it is shutting down this month after the bankruptcy process of failed crypto exchange FTX has reached the "recovery" stage.

The OPNX team said the exchange will "officially cease operations and shut down in February 2024," as per a notice to users that has since been shared on X (formerly Twitter).

Users have been told to settle all positions by Feb. 7 and fund withdrawals will only be allowed through Feb. 14, the team said. The team also reminded users to export their historical data before Feb. 14 so they can have a record of their transactions.

OPNX co-founder Su Zhu has since explained why the exchange was ceasing operations. "The FTX recovery marks the end of crypto claims estates," CoinDesk reported, citing a statement provided by co-founder Kyle Davies on Telegram.

FTX said earlier this week that it will no longer relaunch the fallen cryptocurrency exchange and will focus on liquidating assets, expecting to repay customers in full.

OPNX, which was previously known as Coinflex but was rebranded in March 2023, was labeled as the "world's first public marketplace for crypto claims trading and derivatives." It allows investors to trade their bankruptcy claims for companies such as FTX among others. It has registered an office in Hong Kong.

Zhu and Davies' previous company, Three Arrows Capital (3AC), was ordered by a British Virgin Islands court in mid-2022 to liquidate following a dive in prices and the discovery of risky trades that prevented the hedge fund from repaying lenders.

The two co-founders of 3AC were slapped with a nine-year finance ban by the Monetary Authority of Singapore (MAS) in September for violating securities law.

The duo then established OPNX with Mark Lamb in a much-hyped launch that raised concerns among some in the crypto community due to the people behind the project. The hype didn't last long as less than two dollars of trades were executed in the exchange's first 24 hours, according to CoinDesk.

Earlier last year, Zhu, Davies, Mark Lamb, and OPNX CEO Leslie Lamb, were fined $54,000 each by Dubai's regulatory authority over alleged violations of regulations "related to virtual assets." The executives' penalties have been paid, but the platform's fine of nearly $2.7 million was not settled.