Open Exchange Led by 3AC Founders Raises $25 Million Funding

• Users will be onboarded via a Special Purpose Vehicle.
• Due to KYC regulations, U.S. residents will be excluded from using the platform.

In a very contentious move, the creators of the “Open Exchange” (OPNX) have raised $25 million without publicly disclosing their contributors. In the meanwhile, defunct cryptocurrency exchange CoinFLEX has announced that a Seychelles court has authorized its reorganization arrangement. Thus, momentarily increasing the value of its token.

Kyle Davies contacted the DeFi researcher late on Monday to let them know the fundraising goal had been reached, according to a Twitter thread from DefiIgnas (which was then reposted by co-founder Zhu Su). The leak in January suggested that the funds will be used to create a trading platform. Where creditors of defunct cryptocurrency exchanges and other businesses could buy and sell bankruptcy claims.

Ignas clarified that in order to avoid insolvency, users will be onboarded via a Special Purpose Vehicle. Due to know your customer (KYC) regulations, U.S. residents will be excluded from using the platform.

Based on Bankruptcy Claims

Zhu Su, a former co-leader of the now-defunct Three Arrow Capital (3AC) hedge fund, stated last month that the new exchange was the smartest method to deploy their current resources after it was formally unveiled.

Nevertheless, many people doubted that it would be possible to create a functional exchange based on bankruptcy claims, which are extremely unique and not nearly as fungible as conventional tokens and cryptocurrencies.

According to Ignas, comparable claims on the OPNX will be bundled together, tokenized, and exchanged on the order book market. To prevent these tokens from being acquired by anybody in the United States, withdrawals will be disabled.

Perpetual futures trading even allows customers to utilize bankruptcy claims as collateral. Stablecoins and other cryptocurrencies will not be eligible for lending or borrowing services.

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