Su Zhu, co-founder of the cryptocurrency exchange OPNX, has announced the platform’s shutdown, attributing the decision to the legal claims from the FTX estate.
The closure is set to occur this month, marking the end of operations for the exchange co-founded by the former leaders of the now-defunct crypto hedge fund Three Arrows Capital (3AC). The announcement comes as the FTX estate continues its efforts to recover assets following the high-profile collapse of the FTX exchange.
The decision to shut down OPNX is a consequence of the ongoing legal proceedings and recovery claims made by the FTX estate, which has been working to recoup funds for creditors after FTX’s bankruptcy. The closure highlights the ripple effects of the FTX collapse within the crypto industry, affecting not only direct stakeholders but also associated entities.
According to CoinDesk, Su Zhu pointed to the FTX estate’s claims as the reason for the shutdown, indicating that the recovery process has reached a stage where continuing operations are no longer viable. Finance Magnates reported that the exchange, which was part of the 3AC ecosystem, is winding down this month, following the legal pressures stemming from the FTX debacle.
FTX filed for bankruptcy along with 130 of its affiliates in November 2022, as it was unable to honor customer withdrawals amid a bank run-style collapse due to misappropriation of customer deposits.
The exchange’s founder, Sam Bankman-Fried, was found guilty of seven counts of fraud and conspiracy. He faces up to 115 years in prison and his sentencing hearing is scheduled for March 28, 2024.