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Major Crypto Firms Deny Investment in Three Arrows Founders' New Exchange

Susquehanna (SIG), DRW and Nascent had been included in list of "major investors" in a Friday tweet from OPNX, the exchange.

OPNX, the bankruptcy claims exchange founded by the same people who started now-failed crypto hedge fund Three Arrows Capital (3AC), finally identified its financial backers in a tweet Friday.

Not long after, three of those supposed "major investors" – trading firms Susquehanna International Group (SIG) and DRW, as well as venture-capital firm Nascent – denied what OPNX said.

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OPNX was previously known as CoinFlex, a crypto exchange that's restructuring in the Seychelles. In recent months 3AC founders Su Zhu and Kyle Davies partnered with CoinFlex – which has a token called FLEX – to get this new OPNX exchange going. DRW and Nascent had been investors in CoinFlex.

"DRW is not an investor in OPNX nor are any of its affiliates investors in OPNX," a company spokesperson told CoinDesk.

"Just to clarify, Nascent did not participate in an OPNX fundraising round, we invested in FLEX tokens in early 2021," Nascent tweeted.

"We have not provided any funding to OPNX and have no intentions to do so," a SIG spokesperson told CoinDesk.

Read more: Susquehanna, DRW Are Among Backers of Bankruptcy Claims Exchange OPNX, the Firm Tweets

Amid the denials, OPNX tweeted again. "It's ugly for firms to seek financial gain while simultaneously denying association due to fear of social media backlash," the company wrote.

"Should any party waver in their dedication to transparency and industry advancement, we express our disappointment at their misrepresentation and prefer not to have them as investors in future," OPNX added.

Investors in the Three Arrows Capital hedge fund lost billions of dollars amid the market collapse last year, causing contagion throughout digital-asset markets. Zhu and Davies announced plans for their next act – OPNX – early in 2023.

Read more: A Three Arrows Capital Founder Talks About His New Crypto Bankruptcy Exchange

UPDATE (April 21, 2023, 17:49 UTC): Adds Nascent's denial.

UPDATE (April 21, 2023, 18:38 UTC): Adds SIG's denial.

UPDATE (April 21, 2023, 19:03 UTC): Adds OPNX's latest tweet.



Nick Baker

Nick Baker is CoinDesk's deputy editor-in-chief. He won a Loeb Award for editing CoinDesk's coverage of FTX's Sam Bankman-Fried, including Ian Allison's scoop that caused SBF's empire to collapse. Before joining in 2022, he worked at Bloomberg News for 16 years as a reporter, editor and manager. Previously, he was a reporter at Dow Jones Newswires, wrote for The Wall Street Journal and earned a journalism degree from Ohio University. He owns more than $1,000 of BTC and SOL.

Nick Baker
Danny Nelson

Danny is CoinDesk's managing editor for Data & Tokens. He formerly ran investigations for the Tufts Daily. At CoinDesk, his beats include (but are not limited to): federal policy, regulation, securities law, exchanges, the Solana ecosystem, smart money doing dumb things, dumb money doing smart things and tungsten cubes. He owns BTC, ETH and SOL tokens, as well as the LinksDAO NFT.

Danny Nelson