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.
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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.
Source: https://beincrypto.com/3ac-co-founder-new-platform-trading-bankruptcy-claims/