OPNX, the virtual asset exchange established by the founders of the failed cryptocurrency hedge fund Three Arrows Capital, is set to cease operations this month, as announced on the company’s website. Customers are advised to settle their positions by February 7 at 08:00 UTC and withdraw their funds by February 14. The exchange, created for trading bankruptcy claims, was founded last year by Kyle Davies and Su Zhu, following the collapse of Three Arrows Capital in 2022.
In early 2023, Dubai’s Virtual Assets Regulatory Authority (VARA) cautioned investors about OPNX, which launched on April 4, 2023. According to VARA, OPNX is not under its regulation, and any operations conducted by them in Dubai are unregulated. OPNX claims to offer exchange services for complex virtual asset products, such as derivatives and tokenized bankruptcy claims, which have not been reviewed by VARA and may not be suitable for all investors. Dubai Law No. (4) of 2022 mandates that all virtual asset activity must be regulated for permissibility in this jurisdiction. Therefore, OPNX is not legally authorized to offer any virtual asset services in Dubai.
The co-founders of the failed crypto hedge fund Three Arrows Capital have faced reprimands from Dubai authorities for promoting their new digital-asset exchange, OPNX, without the necessary local license. The Virtual Assets Regulatory Authority in Dubai issued a written warning to Su Zhu, Kyle Davies, the other two co-founders of OPNX, and the platform’s CEO on April 18th.