Bad actors in the cryptocurrency industry have not spared investors any negativity in the last 2 years. These crypto scammers, who have made it easier for crypto-opposing politicians to target the field, are still trying to stay afloat. Kyle and Zhu Su are two of them. It was recently announced that the OPNX exchange would be closing, but there are other developments.
OPNX and OXFun
Kyle Davies and Su Zhu had announced that the Open Exchange (OPNX) would be closing, as we previously reported. The exchange, which will stop trading activities on February 7, will remain open for withdrawal transactions until February 14.
In the meantime, a mysterious exchange called OXFun has emerged to take the place of OPNX. There is not much detail about the relationship with OPNX for this exchange, which is heavily promoted in the OPNX Telegram channel.
Investors Should Be Cautious
OPNX was launched by the co-founders of the cryptocurrency hedge fund Three Arrows Capital (3AC), Davies and Zhu, which defrauded its customers and caused numerous crypto lenders to go bankrupt. In those days, they were planning an exchange with a name more similar to FTX, and then the name changed.
However, it turned out that the concerned investors were not wrong. Zhu was arrested for violating a commitment order as part of the bankruptcy proceedings of 3AC, and a similar order was issued for Davies. We had extensively discussed the risks faced by investors showing interest in the exchange opened by names officially accused of fraud by several countries.
Nevertheless, OPNX managed to create a certain volume. Now, investors need to be cautious about this new OXFun platform, which appears to be connected to the 3AC founders with a history of fraud.
OXFun has an interface that looks like a DeFi platform. However, unlike DEXs, you need to send money not to your own wallet but to the addresses on the deposit page. This points to a centralized structure disguised as DeFi. In the coming days, more advertising and marketing efforts are likely to bring such details to the forefront.
As a result, it seems beneficial to stay away from platforms that appear to be connected to the 3AC fraudsters.
