The bankruptcy claims and crypto exchange OPNX (aka Open Exchange) is suffering from the ghosts of its past, with creditors from now-defunct exchange CoinFLEX throwing a wrench in the plans of the already struggling platform.
In a tweet by co-founder Mark Lamb, OPNX sought CoinFLEX creditors to accept a tender offer that would entitle them to OPNX shares and billions of OX tokens. The unfortunate caveat for creditors is that, according to the tweet, they would be required to vest their tokens over a period of nearly a decade.
Additionally, creditors who didn’t immediately accept the offer would receive lower numbers of shares and OX tokens.
The OX token is down almost 90% from its all-time highs in August and down about 15% from its initial coin offering (ICO) price in May.
The tweet blames creditors for not speaking up sooner, saying “If they disagreed, the alternative path would simply have been building OPNX with zero ties to CoinFLEX.” It also appears to suggest that the astounding success of OPNX is what’s led to the issues with creditors, stating “OPNX’s progress whetted [large creditors’] appetite to stall and refuse previously agreed upon deals.”
Desperate times, desperate measures
It’s fair to assume that the announcement of the public tender offer is a move of desperation from a firm that has seen one of its founders jailed in Singapore and the rest of its executives maintaining radio silence on social media.
A recent CoinDesk article disclosed that Mark Lamb was being sued by former CoinFLEX creditors and a subsequent article revealed that the exchange had given up its desperate lawsuit against The Block founder Mike Dudas.
Meanwhile, volume — as previously reported by Protos — remains stunningly low on the exchange while bankruptcy claims trading for any platform outside of FTX is non-operational.
History of poor business practices
OPNX was started by individuals with links to two very high-profile business failures, Zhu Su and Kyle Davies of 3 Arrows Capital (3AC) and Mark Lamb and Leslie Lamb of CoinFLEX. The concept started with a nod to FTX, passing around a pitch deck with the title ‘GTX.’
The double-criminal-duo later called the name a joke, eventually settling on the moniker ‘Open Exchange,’ or OPNX.
Most of the current problems appear to stem from the sloppy restructuring of CoinFLEX. However, the reason why Zhu Su is sitting in a Singaporean jail cell is due to the fact that he attempted not to cooperate with 3AC liquidators.