OPNX, a virtual asset claims exchange created by the founders of the now-defunct cryptocurrency hedge fund Three Arrows Capital, is closing down this month, as per an announcement on the company’s website.
Customers are urged to close their trading positions by February 7 at 08:00 UTC and withdraw their funds by February 14. This indicates that the platform is discontinuing its services, and users need to wrap up their trading activities and retrieve their funds within the specified timeline.
The closure of OPNX has been attributed to various factors, including the collapse of its co-founders’ previous venture, 3AC, and the subsequent legal and financial challenges.
OPNX, also known as Open Exchange, is a cryptocurrency derivatives exchange providing a transparent space for trading claims, acquiring and staking OX tokens, and engaging in crypto OUSD transactions. Established last year by Kyle Davies and Su Zhu, the platform emerged in the aftermath of the 2022 collapse of Three Arrows Capital.
Users on OPNX can trade futures utilizing various crypto assets as collateral, benefiting from a unique portfolio margin model known as oUSD, the native credit currency of OPNX. Additionally, the exchange features a staking rewards center for OX tokens called The Herd.
At the beginning of 2023, Dubai’s Virtual Assets Regulatory Authority (VARA) issued a warning regarding OPNX, a platform that started its operations on April 4, 2023. VARA clarified that OPNX operates without regulation from their authority, and any activities conducted by OPNX in Dubai are deemed unregulated.
While the exchange asserted its provision of exchange services for intricate virtual asset products, including derivatives and tokenized bankruptcy claims, VARA highlighted that these services had not been reviewed by VARA and might not be suitable for all investors. Therefore, OPNX is not legally authorized to offer any virtual asset services in Dubai.
Additionally, the co-founders of the unsuccessful crypto hedge fund Three Arrows Capital are being reprimanded by Dubai authorities. They are facing criticism for promoting their new digital asset exchange, OPNX, without the required local license.
