Two co-founders of the defunct Singaporean hedge fund Three Arrows Capital (3AC) have been arrested and sentenced to four months in prison for failing to comply with a court order. 3AC, which managed more than $10 billion in digital assets prior to its collapse last June, has left creditors with over $3.5 billion in claims. The Monetary Authority of Singapore has barred both co-founders from conducting enterprise investment activity in the city-state for nine years due to regulatory violations. The other co-founder, Kyle Livingston Davies, is a naturalized Singaporean citizen and his current whereabouts remain unknown. He had fled to Dubai earlier this year and opened a restaurant there. In January, the two co-founders had launched OPNX, a platform based in Hong Kong for trading bankruptcy claims on fallen crypto companies such as 3AC and FTX. The platform launched in April with just $13.64 in trading volume on its debut. By June, the firm claimed it had reached nearly $50 million in daily trading volume. However, holders of OPNX did not appear to have enjoyed news of Zhu’s arrest and Davies’ indictment. On the day of the announcement, the Open Exchange Token fell nearly 60% in a single day to $0.01. The token has lost 79% of its value in the past month and has a fully diluted market capitalization of just $77 million, compared with over $300 million in June. In July, OPNX announced that it had onboarded tokenized claims of FTX and Celsius. Per design, claims would be converted into collateral in the form of OPNX’s native reborn OX (reOX) tokens or oUSD, its credit currency. Users could then trade crypto futures using reOX as collateral. However, the firm’s claims dashboard remains dysfunctional at the time of publication. Leslie Lamb, OPNX’s CEO, had tried to distance the firm from Davies and Zhu, claiming that they are “no longer involved in [its] operations.” In August, all three executives were fined the equivalent of $2.7 million by Dubai’s Virtual Asset Regulatory Authority for running OPNX as an unlicensed exchange in the Emirate. Prior to Zhu’s arrest, 3AC Ventures, a venture capital fund created by the duo in June, appeared to be doing quite well. Its investments have since expanded to a project called “Gamerlan” since its initial investment in Raise. “3AC Ventures is focused on superior risk-adjusted returns without leverage,” its creators proclaimed. Regardless, creditors have made it clear that their priority is in “recovering the assets of 3AC and maximising returns for its creditors,” which could also include former 3AC assets that are used to create new entities. Teneo has since recovered several nonfungible tokens owned by 3AC and auctioned them via Sotheby’s, netting a total of $13.4 million. The proceedings are still ongoing.

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Information	Details
Geography	Asia
Countries	🇸🇬 🇭🇰 🇦🇪
Sentiment	negative
Relevance Score	8
People	Kyle Livingston Davies, Su Zhu, Leslie Lamb, Evelyn Tan, Teneo
Companies	oUSD, reOX, Sotheby’s., Yarwood Homestead, Three Arrows Capital (3AC), Gamerlan, Kyle Livingston Davies, Monetary Authority of Singapore, Celsius, 3AC Ventures, Raise, Dubai’s Virtual Asset Regulatory Authority, Abundunt Cities, FTX, OPNX, Teneo, Open Exchange Token
Currencies	reox, Origin Dollar, OpenXSwap, US Dollar, Ethereum, Bitcoin
Securities	None