OX token plummets after co-founder Zhu’s arrest

Once a key cog in former 3AC founder Zhu’s public rehabilitation, OX plummets on news of his arrest

article-image

MeshCube/Shutterstock modified by Blockworks

share

The price of Open Exchange’s OX token fell as much as 50% on Friday following news of co-founder Su Zhu’s arrest. 

Liquidators for Zhu’s fallen Three Arrows Capital (3AC) fund reported on Friday that Zhu was apprehended by Singaporean officials while attempting to leave the country. Zhu will reportedly be imprisoned for four months in an effort to compel him to cooperate with 3AC liquidation efforts. 

Shortly following the news, the price of the governance token for Open Exchange (OX), plummeted. At the time of publication, OX sits 43% lower on the daily at $.013, having recovered from lows of $.01035. 

Source: Aevo OX Perps chart

Part of the severity of the decline is attributable to limited liquidity for the asset. A single Uniswap v3 pool accounts for nearly 97% of the $5.88 million daily volume, which eclipses the $1.3 million in liquidity in the pool by a factor of four. 

Read more: Three Arrows co-founder Su Zhu arrested in Singapore, says liquidator firm

OX currently has a $33.2 million market capitalization. 

The OX project was founded as an exchange to facilitate trade in crypto bankruptcy claims for entities like Celsius, FTX and 3AC. It was meant to play a crucial role in the public rehabilitation efforts of co-founders Kyle Davis and Zhu.

Loading Tweet..

Zhu and Davis often implied that the collapse of 3AC was moreso due to misplaced market bets rather than fraud or criminal actions. Open Exchange was part of their broader initiative to reestablish themselves in the crypto industry.

According to a statement from Teneo, Davis is also committed to four months in prison, but his whereabouts are currently unknown.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

Heron Finance caters to US accredited investors and uses Goldfinch credit markets on the backend

article-image

Bitcoin, up more than 160% year to date, has plenty of steam left in this rally, analysts say

article-image

Nova Labs will hope to grow Helium’s hotspot network to reduce backup coverage costs paid to T-Mobile

article-image

The LinkedIn posting states that the position would “support the Federal Reserve System’s [CBDC] Research and Development program.”

article-image

Both central banks are exploring the impact a CBDC could have on an economy

article-image

Neutron core contributor Dutheil notes this is “a period of consolidation” in the Cosmos ecosystem