Earlier this month, Three Arrows Capital (3AC) founders Kyle Davis and Su Zhu launched a new crypto exchange OPNX, with plans to also facilitate bankruptcy claims trading. Zhu and Davies teamed up with CoinFLEX founders Mark Lamb and Sudhu Arumugam for their new venture and raised $25 million from previously unnamed investors across the globe.
In a series of tweets over the weekend, OPNX finally disclosed the list of its “major investors,” which included the venture arms of Susquehanna International Group (SIG), DRW, crypto-focused venture firm Nascent and AppWorks, among others.
These firms have since come out with statements denying their involvement in OPNX’s fundraising round.
“We have not provided any funding to OPNX and have no intentions to do so,” said a spokesperson for SIG to CoinDesk on Saturday.
DRW is not an investor in OPNX nor are any of its affiliates investors in OPNX.
— DRW (@DRWTrading) April 21, 2023
“We are backers of CoinFlex and were supportive of Mark to rebuild for stakeholders. Our equity is being forcibly converted to OPNX and we have not committed capital to the new entity. We never met Su Zhu or Kyle Davies and do not support what they did during the last days of 3AC,” said AppWorks in a statement posted to Twitter.
Nascent replied to OPNX’s Twitter announcement, clarifying that it played no part in OPNX’s fundraising and had only invested in CoinFLEX’s native FLEX tokens in 2021. FLEX, which is also being used as OPNX’s native token, dropped 21% after the investors denied investing in the crypto exchange.
Thank you. Yes, at 8s in the video we state that investments were both directly into OPNX, as well as through coinFLEX. Hope there was no confusion.
— OPNX 💪 (@OPNX_Official) April 21, 2023
“It’s ugly for firms to seek financial gain while simultaneously denying association due to fear of social media backlash,” tweeted OPNX shortly after, but several industry watchers still believe the firm largely misrepresented the situation.
There is nothing "transparent" about deliberately misleading your audience by conflating CoinFLEX investors who were forcibly grandfathered in and new investors that made an active decision to partake in OPNX. It's completely disingenuous and you know it. Glad they called it out.
— FatMan (@FatManTerra) April 22, 2023
So let me get this straight. You run an exchange that depends on liquidity. You then flame the biggest traders in the space who could help you generate tight markets for your products. How do you ever expect to succeed?
Things that make you go hmmm … https://t.co/AlJuTbgh0y
— Arthur Hayes (@CryptoHayes) April 22, 2023