The arrest of Open Exchange (OPNX) co-founder Su Zhu led to a decline in the value of the exchange’s OX token. Zhu is also the co-founder of now-defunct crypto hedge fund Three Arrows Capital (3AC).
According to alphanomicsNews of Zhu’s arrest prompted a rapid selloff of nearly $1 million worth of OX tokens.
OX token value craters
This sudden wave of selling combined with negative sentiment surrounding Zhu’s arrest resulted in OX falling to an all-time low of around $0.010, according to BeInCrypto data.
Although there has been a slight recovery at $0.01462, the token’s value remains down more than 80% from its all-time high.
Furthermore, this sharp drop in the value of the token caused its market capitalization to drop by more than $30 million. Its market cap is approximately $57 million at press time.
OX is the native token of OPNX, a specialized exchange designed for trading claims of bankrupt crypto firms like FTX. OX token holders enjoy low trading fees on the platform and participate in its governance activities.
OPNX was launched in April amid controversy over its 3AC co-founders and its association with the struggling Coinflex exchange.
coineco data It turns out that the platform has a spot trading volume of less than $20,000, while its derivatives market has seen a trading volume of almost $70 million in the last 24 hours.
What next after Zhu’s arrest?
Zhu was captured in Singapore on September 29 while trying to flee the country. According to reports, he faces a four-month jail sentence following a commitment order from a Singapore court.
Zhu and his partner Kyle Davis lead the multibillion-dollar fund 3AC. At its peak, the fund controlled approximately $10 billion in assets, making it one of the most prominent companies in the sector.
However, the company was one of the first to collapse after last year’s record market meltdown.
His actions resulted in Singapore authorities imposing a multi-year trading ban on the fund’s founders. Meanwhile, 3AC liquidator Teneo continued to complain that the two co-founders had been uncooperative during the liquidation process.
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