Major Crypto Firms Deny Investment in Three Arrows Founders' New Exchange

OPNX, the bankruptcy claims exchange founded by the same people who started now-failed crypto hedge fund Three Arrows Capital (3AC), finally identified its financial backers in a tweet Friday.

Not long after, three of those supposed “major investors” – trading firms Susquehanna International Group (SIG) and DRW, as well as venture-capital firm Nascent – denied what OPNX said.

OPNX was previously known as CoinFlex, a crypto exchange that’s restructuring in the Seychelles. In recent months 3AC founders Su Zhu and Kyle Davies partnered with CoinFlex – which has a token called FLEX – to get this new OPNX exchange going. DRW and Nascent had been investors in CoinFlex.

“DRW is not an investor in OPNX nor are any of its affiliates investors in OPNX,” a company spokesperson told CoinDesk.

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

“We have not provided any funding to OPNX and have no intentions to do so,” a SIG spokesperson told CoinDesk.

Amid the denials, OPNX tweeted again. “It’s ugly for firms to seek financial gain while simultaneously denying association due to fear of social media backlash,” the company wrote.

“Should any party waver in their dedication to transparency and industry advancement, we express our disappointment at their misrepresentation and prefer not to have them as investors in future,” OPNX added.

Investors in the Three Arrows Capital hedge fund lost billions of dollars amid the market collapse last year, causing contagion throughout digital-asset markets. Zhu and Davies announced plans for their next act – OPNX – early in 2023.

UPDATE (April 21, 2023, 17:49 UTC): Adds Nascent’s denial.

UPDATE (April 21, 2023, 18:38 UTC): Adds SIG’s denial.

UPDATE (April 21, 2023, 19:03 UTC): Adds OPNX’s latest tweet.