Four Companies Deny Investing In 3AC and CoinFLEX Successor OPNX

Industry 1 min, 53 sec READ

by Mike Dalton

The new bankruptcy claims exchange OPNX mistakenly claimed that it had received funding from four investment companies.

Four trading firms have denied that they made investments in OPNX, a successor to the failed cryptocurrency exchanges 3AC and CoinFLEX.

DRW, Nascent, MIAX, and SIG deny involvement

On April 21, OPNX thanked several investors for contributing funding to its exchange platform, which went live on April 5, 2023.

However, four of the companies named in OPNX's thank you message denied any involvement in the company's recent fundraising efforts. The diversified trading firm DRW distanced itself from OPNX by tweeting:

"DRW is not an investor in OPNX nor are any of its affiliates investors in OPNX."

Nascent similarly denied investing in the firm, writing:

"Just to clarify, Nascent did not participate in an OPNX fundraising round, we invested in FLEX tokens in early 2021."

Elsewhere, the Wall Street Journal reported that trading firm Susquehanna International Group (SIG) did not invest in OPNX and has "no intentions" of doing so. The options trading company MIAX reportedly denied investing in the new company as well.

OPNX later clarified that those companies had previously invested in CoinFLEX, a previously independent company that is being merged into OPNX.

OPNX has attracted controversy

OPNX is controversial due to the fact that its leadership is drawn from two crypto firms that failed in dramatic ways during last year's crypto liquidity crisis.

The founders of Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are heavily involved in OPNX alongside members of CoinFLEX.

3AC halted withdrawals and filed for bankruptcy around July 2022. Soon after the firm's collapse, Zhu and Davies went missing as they supposedly fled Singapore — the country in which 3AC was based. 3AC owes approximately $3.5 billion to its creditors.

CoinFLEX, meanwhile, halted withdrawals in June 2022 and filed for bankruptcy in August 2022. It is now locked in a conflict with Bitcoin Cash advocate Roger Ver, who is said to owe the firm as much as $84 million. CoinFLEX partially reopened withdrawals in 2022, but it is unclear how much it now owes its customers.

3AC and CoinFLEX were among several companies that froze user accounts last summer before filing for bankruptcy. In fact, OPNX is designed to allow users to trade bankruptcy claims as well as standard crypto assets and derivatives.