CoinFLEX Crypto Exchange Creditors Accuse Other Exchange OPNX of Wrongful Use of Assets

Last updated: November 24, 2023 03:39 EST
. 1 min read

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Man is accused — Source: Adobe / pathdoc

Creditors of the crypto derivatives exchange CoinFLEX are alleging that the newly established creditor claims marketplace OPNX, founded by bankrupt crypto hedge fund Three Arrows Capital (3AC) co-founders Kyle Davies and Su Zhu, wrongfully used CoinFLEX assets without their consent.

The accusations are detailed in a writ of summons filed in the High Court of Hong Kong and was first reported on by Cointelegraph on Thursday.

The plaintiffs, Liquidity Technologies and Liquidity Technologies Software, entities associated with CoinFLEX’s original operations, claim that OPNX co-founder and former CoinFLEX CEO Mark Lamb misappropriated assets, intellectual properties, and trade secrets of CoinFLEX during his tenure.

The filing alleged that Lamb diverted clients and business opportunities to OPNX, solicited employees and contractors, and engaged in actions detrimental to CoinFLEX creditors.

Critics argue that Lamb’s actions have included forging a fake non-disclosure agreement and falsely representing OPNX’s association with CoinFLEX creditors.

The accusations also highlight Lamb’s simultaneous involvement in setting up OPNX while serving as CoinFLEX’s CEO.

The legal action is a response to dissatisfaction with the restructuring of CoinFLEX, which halted withdrawals, leading creditors to form an ad hoc committee for deliberations.

After the restructuring’s approval on March 7, creditors claim to have discovered Lamb’s actions against their interests, leading to the filing of the writ of summons.

The allegations have not been proven in the High Court of Hong Kong, and the legal proceedings add another layer of complexity to the ongoing drama.

OPNX, responding to criticism from figures like BitMEX co-founder Arthur Hayes, asserts that its model benefits creditors by allowing them to sell claims on the exchange.