3AC’s escapees are in disarray as OPNX faces a new threat: Asia Express Cryptocurrency scrgruppen

Su Zhou, co-founder of 3AC, has been arrested in Singapore, leaving many of the disgraced blockchain executives’ entrepreneurial ventures in disarray.

Our weekly news roundup from East Asia curates the most important developments in the industry.

3AC creditors respond

On September 29, Su Zhou, co-founder of defunct Singaporean hedge fund Three Arrows Capital (3AC), which before its collapse last June managed more than $10 billion in digital assets, was arrested at Changi International Airport in Singapore while trying to flee from… The country. After the referral order is issued.

Just days before his arrest, the Singaporean courts had issued an arrest warrant for Chow after his willful failure to comply with a court order obtained, which, in essence, forced him to cooperate with the liquidators’ investigations and account for his activities as one of the company’s founders. 3AC and former investment manager. Cho, a Singaporean citizen, was sentenced to four months in prison for the violation.

Tinio, 3AC’s appointed liquidator, said in an emailed statement that creditors will seek to engage with him on 3AC-related matters, with a focus on recovering assets that are either owned by 3AC or acquired using 3AC funds during his term. Time in prison.

Tinio wrote that the liquidators will take every opportunity to ensure that Mr Chu fully complies with the court order against him to provide information and documents relating to 3AC and its former investment manager during and after his period of imprisonment.

Kyle Livingston Davies, co-founder of 3ACs and a naturalized Singaporean citizen, was also sentenced to four months in prison for contempt of court, the lawsuit revealed. However, his current whereabouts remain unknown. Cointelegraph previously reported that Davis fled to Dubai earlier this year and opened a restaurant there.

Recently, the Monetary Authority of Singapore banned both Zhou and Davies from conducting institutional investment activity in the city-state for nine years due to regulatory violations, such as 3AC’s legal assets falling below the management limit.

In July 2022, 3AC filed for bankruptcy after a series of failed leveraged trades on the Terra ecosystem emptied the hedge fund of assets and left creditors with claims of more than $3.5 billion. This event caused a chain reaction that led to the bankruptcy of 3AC’s counterparties, such as Celsius, Voyager, and FTX. Before the counterattack, 3AC’s creditors suffered a humiliating setback as a US judge halted more than a year of bankruptcy proceedings due to a clerical error.

At one point last year, Davis publicly boasted that he had no lawsuits or regulatory actions pending against him. After the collapse of 3AC, both Cho and Davis embarked on alternative entrepreneurial ventures. Aside from the Davies restaurant, the luxury Yarwood Homestead in Singapore, purchased just months before 3AC’s collapse, has been converted into an eco-farm. Local media He writes:

Based on the principles of ecological design and agroecology, the company has transformed the park into farmland, an ecosystem that includes agriculture and aquaculture, producing local vegetables, herbs, fruits, fish, chickens and ducks.

The farm is owned by Sue Zhou’s wife, Evelyn Tan, through her company Abundunt Cities. Yarwood Homestead is open to curious gardeners, citizen scientists and the community on an invitation-only basis. We are also running a private food trial to help us test local food recipes through Native Edibles R&D Kitchen, excerpted from their website is reading.

Second wave

When something happens to you, it may get worse.

In January, Zhu and Davies traded OPNX, a Hong Kong-based platform for trading bankruptcy claims on collapsed cryptocurrency companies like 3AC and FTX, which they developed after soliciting $25 million from various investors. The platform launched in April with a trading volume of just $13.64 when it debuted. By June, the company claimed to have reached nearly $50 million in daily trading volume.

However, OPNX holders do not seem to have enjoyed the news of Zhou’s arrest and Davis’ conviction. On the day of the announcement, the Open Exchange Token fell nearly 60% in one day to $0.01. The coin lost 79% of its value in the past month and has a fully diluted market capitalization of just $77 million, compared to more than $300 million in June.

In July, OPNX announced that it had consolidated the token claims of FTX and Celsius. By design, claims will be converted into collateral in the form of OPNX’s native OX (reOX) tokens or oUSD, its fiduciary currency. Users can then trade cryptocurrency futures using reOX as collateral.

However, the company claims that the dashboard is still broken at the time of publication. OPNX CEO Leslie Lamb tried to distance the company from Davis and Chu, claiming that they were no longer involved in [its] Operations. In August, the three executives were fined the equivalent of $2.7 million by Dubai’s Virtual Assets Regulatory Authority for operating OPNX as an unlicensed exchange in the emirate.

Before Zuss’ arrest, 3AC Ventures, the venture capital fund the duo established in June, appeared to be doing well. Its investments have since expanded into a project called Gamerlan since its initial investment in Raise. The creators of 3AC Ventures announced that it is focused on achieving superior risk-adjusted returns without the use of leverage.

Regardless, creditors have made clear that their priority is to recover 3AC’s assets and maximize returns for its creditors, which could also include former 3AC assets being used to create new entities. Teneo has since recovered several NFTs owned by 3AC and auctioned them off through Sothebys, bringing in a total of $13.4 million. The procedures are still ongoing.

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