Singapore court arrested Su Zhu, co-founder of Open Exchange (OPNX). This development triggered a collapse in the value of the exchange’s OX token. Zhu is also the co-founder of the now-bankrupt crypto hedge fund Three Arrows Capital (3AC). News of Zhu’s arrest sparked a fire sale of nearly $1 million worth of altcoin tokens, according to Alphanomics.
Altcoin crashed after its founder was arrested
This sudden selloff, coupled with the negative sentiment surrounding Zhu’s arrest, increased the severity of the crash. Thus, causing the altcoin price to drop to its all-time low around $0.010. Meanwhile, the token made a minor recovery towards $0.01462. However, the OX value has dropped by more than 80% compared to its all-time high.
Additionally, this sharp drop in token value caused its market cap to drop by over $30 million. As of press time, the altcoin market cap is around $57 million. OX is the native token of OPNX, a private exchange designed to trade the receivables of bankrupt crypto firms like FTX. OX token holders have lower transaction fees on the platform. Additionally, it participates in governance activities.
OPNX has been in a controversial position due to its relationship with the 3AC co-founders and the embattled CoinFLEX exchange. Despite this, it entered the market in April. Coingecko data shows that the platform’s spot trading volume is less than $20,000. It reveals that the derivatives market had a transaction volume of approximately 70 million dollars in the last 24 hours.
What will happen after Zhu’s arrest?
cryptokoin.comAs you follow from , altcoin co-founder Zhu was caught in Singapore on September 29 while trying to flee the country. According to reports, he was sentenced to four months in prison following an order from a Singapore court. Zhu and his partner Kyle Davies managed the multibillion-dollar 3AC fund. At its peak, the fund controlled approximately $10 billion in assets. This made it one of the leading companies in this field. However, the firm was one of the first to collapse following last year’s record market decline.
The consequences of their actions led Singaporean authorities to impose a multi-year trading ban on the fund’s founders. Meanwhile, 3AC liquidators Teneo constantly complained that both co-founders were uncooperative in the liquidation process.
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