Open Exchange Provides A Trading Platform For Bankruptcy Claims
The platform intends to make it possible to monetize claims, drawing users’ interest in trading bankruptcy claims from companies like Three Arrows Capital (3AC), FTX, BlockFi, and more. The co-founders of the cryptocurrency exchange CoinFlex and the founders of the failed crypto hedge fund 3AC established it.
Open Exchange Provides A Trading Platform For Bankruptcy Claims
Zhu Su and Kyle Davies, the co-founders of the demised cryptocurrency hedge fund Three Arrows Capital (3AC), have teamed up with the creators of cryptocurrency exchange CoinFlex. Together, they created Open Exchange, which they refer to as the first platform for trading derivatives and claims in the cryptocurrency space.
By creating a platform for their trading activity, Open Exchange has committed to making it possible for claims to be monetized. It is intended for people interested in exchanging bankruptcy claims from companies like 3AC, FTX, or Blockfi. On the homepage, it is noted that people from 23 particular regions are not allowed to register on the website.
Residents of various countries, including sanctioned states like North Korea, Cuba, and Venezuela, have restricted access to Open Exchange’s platform. While some of the biggest bankruptcies involving cryptocurrencies, including those of Genesis, BlockFi, Celsius, and Voyager Digital, are occurring within US-based enterprises, it is interesting that the US is also listed among these banned regions.
Open Exchange Rekindles Hope For Trapped Creditor Claims
With an initial market cap of $10 billion, the Singapore-based hedge fund 3AC suffered a setback and ultimately declared bankruptcy in July. Due to a severe drop in value and risky investments that left the fund, 3AC could not pay its creditors, so the British Virgin Islands court ordered that it be liquidated.
On January 16th, a PowerPoint presentation outlining the idea for a new exchange from CoinFLEX and Three Arrows Capital (3AC) was leaked. The exchange was known as “GTX” at the time.
On Twitter, Zhu announced the launch of the new exchange. He said he had discussions with Mark Lamb, co-founder and CEO of CoinFLEX, regarding trapped creditor claims from businesses like FTX, Voyager, and Celsius-inspired Open Exchange (OPNX). According to Zhu, the concept “clicked” simultaneously for the two of them.
