Su Zhu

OPNX token spikes 50% after Su Zhu unexpectedly posts a 'gm' on Twitter

The OX token hit a price high not seen since co-founder Su Zhu was arrested in late September.

Open Exchange Token (OX), the native token of the crypto bankruptcy claims platform OPNX, spiked 50% just 20 minutes after co-founder Su Zhu supposedly posted to X (Twitter) for the first time since his arrest.

On Dec. 29, the same day he was arrested at Singapore’s Changi Airport attempting to leave the country.

In the 20 minutes after Su’s X post, OX jumped nearly 50% to $0.021 and hit a 63-day high — a price not seen since the day of Su’s Sept. 29 arrest, according to CoinGecko data.

OX token price with a spike in the minutes after Su’s X post. Source: CoinGecko

Shortly after the price peak, OX retraced by around 6%.

Su was arrested on Sept.

The order was meant to see Su serve four months’ imprisonment — meaning he wouldn’t be released until next year, though some have speculated he may have been released after a wallet labeled “suzhu.eth” — believed to belong to Su (though unconfirmed) — became active again on Nov.

OPNX, short for Open Exchange, is a platform allowing for the trade of creditor claims from bankrupt crypto companies.

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OPNX quips about its early dismal volume after reporting 90,000% surge

OPNX exchange has joked about its earlier low trading volume before experiencing a big surge in volume during the last 24 hours.

Open Exchange (OPNX) has claimed to have experienced a massive surge in trading volume and has joked about its dismally low volume on its opening day.

According to an April 10 tweet by OPNX, its day one trading volume on April 4 hit a total of $13.64 but has since apparently seen a surge to $12,398 on April 9, an increase of over 90,000%.

However, new data suggests the trading volume has seen a far bigger increase during the last 24 hours.

According to CoinGecko data, OPNX’s 24-hour trading volume as of April 10 has exploded to over $179,000, representing a gain of around 24,500% since April 9.

The vast majority of the volume has come from the trading pair for Bitcoin (BTC) and Tether (USDT), with more than $178,000 worth coming from the pair.

It’s unclear what exactly sparked the increase but it could be connected to the April 9 announcement from OPNX about a new market-making program to help increase its volume.

OPNX’s trading volumes may also be a result of the steady climb in the price of BTC, which has seen the largest crypto by market cap cruise past $30,000 for the first time since June.

Related: 3AC, Coinflex founders collaborating to raise $25M for new claims trading exchange

OPNX CEO Leslie Lamb announced the exchange was open for business on April 4. The firm is the result of a partnership between the co-founders of crypto investment firm Coinflex and the co-founders of the collapsed hedge fund Three Arrows Capital, Su Zhu and Kyle Davies.

The crypto community has had a mixed response to the unveiling of OPNX and its reported trading volume.

Some comments criticized the exchange’s connection with Davies and Zhu, whose whereabouts have remained unclear since the 2022 collapse of 3AC, which once held $10 billion worth of assets.

Others, meanwhile, ridiculed OPNX’s still relatively low trading volume, joking that Changpeng “CZ” Zhao, the CEO and founder of Binance, would be worried about the project.

In contrast, Binance posted a 24-hour volume of over $11 billion compared to OPNX’s $179,000, as per data from CoinGecko.

Magazine: Zhu Su’s exchange did $13.64 in volume akshually, Huobi in crisis: Asia Express

3AC co-founder can answer subpoena or ‘take his chances’ — US judge

The U.S. judge presiding over the Three Arrows Capital bankruptcy case has upped the pressure on Kyle Davies to comply with a January-issued subpoena.

Kyle Davies, the co-founder of bankrupt crypto hedge fund Three Arrows Capital, has been ordered to answer the subpoena issued to him in January or risk being held in contempt of court.

The Jan. 5 subpoena was issued to Davies via Twitter following approval from a New York bankruptcy court, instructing him to provide 3AC’s liquidators with documents such as seed phrases and private keys as well as company communications and other company-related documents within 14 days.

After failing to hear from Davies, the United States Bankruptcy Judge Martin Glenn granted a motion to compel on March 22, noting that Davies can appear and contest the arguments made by 3AC liquidators, “or he can fail to appear as he has done so far, and, frankly, take his chances.”

A motion to compel is a legal request that the court will compel one party to provide evidence to the party that brought the motion.

People found to be in contempt of court during civil proceedings are usually hit with a fine, but may also be imprisoned. The purpose of civil contempt is to coerce compliance, so the severity of punishments can increase until the order is carried out.

Related: Do Kwon faces fraud charges from US prosecutors hours after arrest

The current whereabouts of both Kyle Davies and fellow 3AC co-founder Su Zhu remains unknown.

Davies’s most recent tweet, on March 23, appears to show a photograph of him in Bali. However, an earlier tweet from the same day shows him standing with Su Zhu and one other person in Bahrain.

Su Zhu also shared a tweet with a recognizable landmark in the background on the same day, however, suggesting he may be or have recently been in Dubai.

According to lawyers for 3AC’s liquidators, Davies has “chosen to ignore his duties to Three Arrows.”

Meanwhile, the pair from 3AC has teamed up with CoinFLEX to launch OPNX, a marketplace aimed at enabling claims in crypto firm bankruptcy proceedings to be bought and sold. 

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3AC subpoenas issued as dispute grows over claims of Terraform dump

The bankruptcy judge has given approvals to subpoenas aimed at Three Arrows Capital’s leadership, while a new Terra Luna conspiracy has been floated.

A federal judge overseeing Three Arrows Capital’s (3AC’s) bankruptcy proceedings has signed an order approving subpoenas to be delivered to 3AC’s former leadership, including co-founders Su Zhu and Kyle Davies.

The subpoenas require the founders to give up any “recorded information, including books, documents, records, and papers” in their custody that relates to the firm’s property or financial affairs.

The infamous hedge fund, worth $10 billion at its peak, filed for Chapter 15 bankruptcy on Jul. 1 with its troubles tied up in too much leverage and the collapse of Terra Luna (LUNA), known now as Terra Classic (LUNC), and its algorithmic stablecoin formerly known as TerraUSD (UST).

Since then, the liquidators — advisory firm Teneo — have been trying to hunt down the firm’s assets and pin down the 3AC’s co-founders.

The latest order allowing for the subpoenas will require recipients to give up any and all account information, seed phrases, and private keys for its digital and fiat assets, details about the securities and unregistered shares, and any accounts held on centralized or decentralized exchanges, along with any other tangible or intangible assets.

The order also labels hedge fund attorney Hannah Terhune, directors Mark Dubois and Cheuk Yao Pau, and Kelly Chen — wife of co-founder Kyle Davies — as “discovery targets”, alongside trading desk company Tai Ping Shan Limited, venture capital firm DeFiance Capital, 3AC-backed NFT fund Starry Night Capital and all of their associates.

Related: Legal team for 3AC liquidators blast founders for shifting blame to FTX, media blitz amid bankruptcy

Any individuals served with the subpoena are required to comply within 14 days unless otherwise agreed with the parties.

At the time of writing there has been no solid information on the whereabouts of either Zhu or Davies, it’s rumored Zhu is residing in Dubai while Davies is residing on the Indonesian island of Bali. Both have been active on social media commenting on developments relating to the collapse of FTX and Alameda research.

Claim: Terraform dumped $450M UST before crash

Meanwhile, self-proclaimed Terra whistleblower FatMan has made new claims on Twitter that it was the actions of Terraform Labs itself that led to the de-pegging of TerraUSD (UST), now TerraClassicUSD (USTC), in May — as opposed to a concerted attack.

That being said, not everyone is convinced about the theory or that the information is new.

In a Dec. 6 Twitter thread FatMan cited “bombshell data” from anonymous researcher Cycle_22 that purportedly discovered two trading wallets which are verified to be owned by Terraform Labs had “dumped” $450 million worth of UST on the open market in the three weeks leading up to the de-peg, explaining:

“TFL has been perpetrating the narrative that UST was ‘attacked.’ This is a false flag.”

“In reality, TFL themselves weakened the Curve pool by irresponsibly dumping a massive amount of UST in a short timeframe. This reduced liquidity and severely weakened the peg,” FatMan said.

However, some Twitter users responding to the thread have stated it was “public knowledge” that TFL was withdrawing UST from a Curve liquidity pool (3Pool) in preparation to seed its new stablecoin liquidity pool (4Pool) it was working with Frax Finance at the time.

Others, such as Twitter user RyanLion said it had been “clearly communicated” that the UST swaps into the curve pool were part of moves of swapping UST into other stables to purchase Bitcoin (BTC) for the Luna Foundation Guard reserves.

A June blog from blockchain firm Chainalysis said that while Terraform Labs withdrew millions of UST from 3Pool at the time (approximately 150 million), it was the actions of two traders in the hour following — swapping a total of 185 million UST for USDC and TFL’s response to that, which led to the depeg and resulting panic sell-off.

Three Arrow’s Su Zhu reveals latest attempts at a comeback post-FTX

The fall of FTX appears to have brought back certain crypto “villains” out from hiding, one even wants to start a new podcast series.

Three Arrows Capital co-founder Su Zhu looks like he may be attempting a comeback amid the fallout over FTX and Sam Bankman-Fried — seen by some as the crypto industry’s newest supervillain.

After months of radio silence, Su Zhu remerged on Twitter on Nov. 9, the day after FTX revealed it was suffering from a “liquidity crunch.”

As the FTX saga has unfolded, Zhu has continued to post on Twitter, offering sage advice through poetic metaphors, while tweeting veiled criticism of Sam Bankman-Fried and his handling of FTX.

In his latest Nov. 27 Twitter thread Zhu revealed his next steps — the launch of a “long-form video podcast series” that discusses “life, belief systems, and mental health,” which will be launched with a collaborator and friend named “Cliff.”

In the tweet, Zhu also makes reference to Allah, a sign some believe means he had converted to Islam.

Recently, Zhu also hinted at creating a new trading firm in a Nov. 22 interview with Bloomberg, saying it could be an “all-weather fund” — made to perform reasonably through all market conditions — that invests in traditional financial assets and crypto.

Zhu’s latest quasi-announcement has attracted more criticism than support, however, with many drawing a contrast between his actions at 3AC with the ideologies presented in Islam.

Blogger and nonfungible token (NFT) project founder Foobar asked “what does Allah say about interest-bearing loans?”

Another user pointed out that interest is “haram,” or forbidden under Islamic law.

Over the last few weeks, the community has noticed a return of so-called crypto villains to Twitter following the collapse of FTX.

Related: It’s time for crypto fans to stop supporting cults of personality

Another Three Arrows Capital co-founder, Kyle Davies, recently reappeared on Twitter after months of radio silence, posting on Nov. 13 on Twitter that he’d spent the last few months seemingly looking at grass and painting.

He even appeared on CNBC’s Squawk Box program on Nov. 16 to allege that Alameda “hunted” 3AC’s positions.

Alex Mashinsky, the founder of the bankrupt lending platform Celsius Network, has also made a reappearance after FTX’s downfall, appearing in a series of Twitter Spaces over the last few weeks.

In a Twitter Space on Nov. 27 Mashinsky said he “loves the idea” of getting FTX to “pay for the hole” and asked listeners to “make a lot of noise” and convince bankruptcy lawyers for Celsius and its Committee of Unsecured Creditors to sue FTX to pay for Celsius’ cash deficit.

It’s estimated that Mashinsky, Zhu and Davies owe creditors around $6.3 billion.

3AC liquidators seek ‘alternative means’ to subpoena missing founders

Advisory firm Teneo argued that standard methods to contact the Three Arrows Capital founders have failed, and is now looking for other ways to subpoena them.

Liquidators for Three Arrows capital (3AC) have asked a United States court to grant them permission to subpoena the embattled crypto hedge fund’s founders through “alternative means.”

To this date, the whereabouts of Three Arrows Capital founders Su Zhu and Kyle Davies remains unknown, with some accusing the duo of being on the run.

In a court motion filed to the United States Bankruptcy Court Southern District of New York on Oct. 14, advisory firm Teneo claimed that standard methods to contact the duo have failed as the “Founders’ whereabouts remain unknown.”

It also said that the request for Advocatus Law LLP, the “Singapore counsel purporting to represent the Founders,” has declined to accept the subpoenas on behalf of the pair, adding that the founders have also “yet to offer any forthright cooperation” having “only made themselves directly available for two brief discussions” since proceedings began.

As a result, the liquidators had asked the court to use “alternative means” to serve subpoenas, which is understood to include reaching out to the duo on their Twitter accounts and email addresses.

With the filing of this new motion, liquidators say they seek the “authority to serve subpoenas for the production of documents and testimony on the Founders, the Investment Managers, and third parties.”

Meanwhile, an Oct.18 report from Bloomberg claims U.S. regulators are launching a probe into possible legal violations by the Singapore-based hedge fund.

Bloomberg alleges the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are now investigating whether 3AC misled investors and failed to register with the appropriate agencies.

Both Zhu and Davies have been keeping a low profile in the wake of 3AC’s insolvency in June. 

3AC filed for a Chapter 15 bankruptcy on Jul. 1 in a New York court. However, Zhu and Davies’ current location has never been disclosed.

Zhu resurfaced briefly on Twitter in July when he accused liquidators of “baiting“ them for information to use in court, with Davies retweeting the post, but the duo has gone radio silent again since then.

3AC managed billions in assets at one point but became another crypto firm to go bankrupt during the bear market after the broad sell-off in digital assets spurred in part by the collapse of the Terra blockchain and alleged poor management decisions on their part.

Three Arrows Capital fund moves over 300 NFTs to a new address

According to blockchain provider Nansen, hundreds of NFTs have been moved from the 3AC-linked fund to a Gnosis Safe address.

Starry Night Capital, a nonfungible token (NFT)-focused fund launched by the co-founders of the now-bankrupt hedge fund Three Arrows Capital (3AC), has moved over 300 NFTs out of its address, according to reports. 

Starry Night Capital was founded last year by Su Zhu, Kyle Davies and pseudonymous NFT collector Vincent Van Dough. At the time, the fund planned to exclusively invest in “the most desired” NFTs on the market.

Blockchain data provider Nansen on Oct. 4 on Twitter noted that the NFTs were reportedly shifted from a wallet associated with the fund, including Pepe the Frog NFT Genesis, which sold for 1,000 Ether (ETH) in October last year, worth $3.5 million at the time. 

Nansen said the NFTs previously collected by Starry Night Capital are moving to a Gnosis Safe address. 

Gnosis Safe is a platform used to manage digital assets on Ethereum, giving users complete self-custody over funds and digital assets.

A report from Bloomberg estimates that the Starry Night Capital collection’s total value sits at around $35 million.

It comes months after the Singapore-based crypto hedge fund 3AC was ordered into liquidation by a court in the British Virgin Islands, leading to the appointment of liquidation firm Teneo, which has gained control of at least $40 million of 3AC assets so far, Cointelegraph reported in August. 

That sum, however, accounts for only a tiny fraction of the 3AC’s debt to its creditors, which amounts to at least $2.8 billion.

The NFT transfers came almost four months after Starry Night Capital’s main crypto wallet moved almost all of its digital tokens to a new address. 

The Singapore-based crypto hedge fund became one of the many crypto firms that went bankrupt following the collapse of the Terra ecosystem earlier this year. The company, which once had over $10 billion in assets under management, eventually filed for a Chapter 15 bankruptcy on July 1 in a New York court.

3AC allegedly liable for $2.8B in creditor claims

The amount is likely understated as many of 3AC’s borrowing details remain confidential.

According to Twitter user @DrSoldmanGachs, a self-proclaimed creditor of troubled Singaporean crypto hedge fund Three Arrows Capital (3AC), the now-defunct entity allegedly owes $2.8 billion in claims, as discovered through a recent 3AC creditors meeting. In addition, the claim amount could be understated, as many have either not made their claim or have not disclosed their claim amounts for reasons of confidentiality.

As told by DrSoldmanGachs, the meeting voted to elect a creditor committee comprising Digital Currency Group, Voyager Digital, Blockchain Access Matrix Port Technologies and CoinList Lend. These five parties above represent approximately 80% of the current level of claims.

3AC assets are believed to be comprised of bank account balances, direct crypto holdings, underlying equity in projects and nonfungible tokens. At the time of publication, it is unclear how much in the fund’s equity remains. Last year, the hedge fund reportedly held $6 billion in assets and $3 billion in liabilities.

Via a series of highly-leveraged bullish directional bets with borrowed money from major crypto institutions, 3AC became insolvent amid the ongoing cryptocurrency bear market. Its founders allegedly fled and defaulted on loan payments that were left behind, leading to a major contagion among centralized finance firms tha lent money to 3AC.

Both of 3AC’s co-founders, Su Zhu and Kyle Davies, could not be located after the fund’s blowup. Ironically, Su Zhu is allegedly claiming $5 million from 3AC, while Chen Kaili Kelly, wife of Kyle Davies, is allegedly claiming $66 million. However, such claims are reportedly quasi-equity and subordinate to the distribution of leftover assets, if any, to creditors.