Open Exchange (OPNX), a unique platform that allows trading of bankruptcy claims alongside crypto exchange operations, has announced its decision to shut down. This comes as co-founders Su Zhu and Kyle Davies face legal repercussions stemming from the failure of their previous venture, Three Arrows Capital.
OPNX's Closure and Background
OPNX will cease all operations by February 14th, according to an email sent to its users. The platform has urged its clientele to close all positions by February 7th and withdraw all funds before the shutdown date. After February 14th, the withdrawal functionality will be disabled. The announcement has sent shockwaves through the crypto community, leading to a significant drop in value for the platform's native OX token.
OPNX was established after the bankruptcy of Three Arrows Capital, a Singapore-based crypto hedge fund that collapsed in June 2022 during a broader market downturn. The platform offered a unique service, allowing users to trade creditor claims of bankrupt crypto companies. This service became increasingly relevant as the industry faced a growing number of insolvencies.
Controversy and Legal Challenges
The downfall of Three Arrows Capital and the subsequent launch of OPNX were marked by controversy and legal challenges for co-founders Su Zhu and Kyle Davies. The duo faced intense scrutiny and legal actions, including being subpoenaed via messages on the social media platform X by Teneo, the firm responsible for liquidating Three Arrows Capital's assets. The founders' initial disappearance and alleged concealment of their whereabouts further complicated the situation.
In September 2023, Singapore's central bank issued nine-year prohibition orders against Davies and Zhu for alleged violations of the country's securities laws related to their operations at Three Arrows Capital. Su Zhu was apprehended at Singapore airport and sentenced to four months in prison for failing to cooperate with bankruptcy proceedings. Additionally, a court in the British Virgin Islands froze over $1 billion in assets tied to Zhu, Davies, and Davies' wife, Kelly Chen, as legal proceedings unfolded.
The question remains whether Su Zhu and Kyle Davies will attempt to launch another project. Feel free to share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
What Does Gold Do as an Investment Option?
The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.
Gold prices are volatile due to their limited supply. Physical gold is not always in stock.
Can I hold physical gold in my IRA?
Gold is money. Not just paper currency. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Gold has historically performed better during financial panics than other assets. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. Gold was one asset that outperformed stocks in turbulent market conditions.
Gold is one of the few assets that has virtually no counterparty risks. Your stock portfolio can fall, but you will still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, the liquidity that gold provides is unmatched. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Gold is liquid and therefore it makes sense to purchase small amounts. This allows one to take advantage short-term fluctuations within the gold price.
Can I buy or sell gold from my self-directed IRA
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts are financial instruments that are based on gold's price. They let you speculate on future price without having to own the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
Should You Purchase Gold?
In the past, gold was considered a haven for investors during economic turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts think that this could change in the near future. According to them, gold prices could soar if there is another financial crisis.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
Here are some things to consider if you're considering investing in gold.
- First, consider whether or not you need the money you're saving for retirement. It is possible to save enough money to retire without investing in gold. The added protection that gold provides when you retire is a good option.
- Second, ensure you fully understand the risks involved in buying gold. Each one offers different levels security and flexibility.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. Your gold coins may be lost and you might never get them back.
Don't buy gold unless you have done your research. Make sure to protect any gold you already own.
Can the government seize your gold?
Your gold is yours and the government cannot take it. You worked hard to earn it. It belongs exclusively to you. But, this rule is not universal. You can lose your gold if you have been convicted for fraud against the federal governments. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
A growing trend: Gold IRAs
The gold IRA trend is growing as investors seek ways to diversify their portfolios while protecting against inflation and other risks.
Owners of the gold IRA can use it to invest in physical bars and bullion gold. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.
A gold IRA allows investors to manage their assets without worrying about market volatility. They can use the gold IRA to protect themselves against inflation and other potential problems.
Investors also enjoy the benefits of owning physical gold, which includes its unique properties such as durability, portability, and divisibility.
A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.
Investors looking for financial security are increasingly turning to the gold IRA.
By: David Sencil
Title: OPNX to Cease Operations as Co-Founders Face Legal Troubles
Sourced From: news.bitcoin.com/end-of-the-line-for-opnx-built-by-three-arrows-co-founders-zhu-and-davies/
Published Date: Fri, 02 Feb 2024 19:30:26 +0000