Introduction
Open Exchange (OPNX), a platform that offered unique trading options for bankruptcy claims and operated as a crypto exchange, has announced that it will cease all operations by February 14. This decision comes as a result of the legal troubles faced by the co-founders of OPNX, Su Zhu and Kyle Davies, who were also involved in the collapse of the Singapore-based crypto hedge fund, Three Arrows Capital (3AC).
Closure Announcement and Impact
OPNX has sent an email to its users, urging them to close all positions by February 7 and withdraw all funds by the shutdown date of February 14. After this date, the withdrawal functionality will be disabled. The news of OPNX's closure has caused shockwaves throughout the crypto community, leading to a significant drop in the value of the platform's native OX token, which experienced a 38% decrease within just one hour of the announcement.
OPNX's Origins
OPNX was established following the bankruptcy of Three Arrows Capital, once a $10 billion hedge fund that collapsed in June 2022 during the broader crypto market downturn. OPNX 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 accompanied by controversy and legal challenges for Su Zhu and Kyle Davies. Both founders faced intense scrutiny and legal actions, including a dramatic moment when they were 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 complicated Teneo's efforts.
Singapore's Central Bank and Legal Proceedings
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. Furthermore, 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 against them continued.
What's Next for Zhu and Davies?
The question now remains whether Su Zhu and Kyle Davies will attempt to launch another project in the future. The implications of their legal troubles and the closure of OPNX will undoubtedly shape their decisions. Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
How much should precious metals be included in your portfolio?
First, let's define precious metals to answer the question. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them very valuable in terms of trading and investment. Gold is currently the most widely traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also unaffected significantly by inflation and Deflation.
In general, prices for precious metals tend increase with the overall marketplace. However, they may not always move in synchrony with each other. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rates which makes bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. These precious metals are rare and become more costly.
Diversifying across precious metals is a great way to maximize your investment returns. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
What should I pay into my Roth IRA
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. The account cannot be withdrawn from until you are 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, you cannot touch your principal (the original amount deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. Withdrawing your earnings will result in you paying taxes. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 This leaves you with $6,500 remaining. Because you can only withdraw what you have initially contributed, this is all you can take out.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. There is no limit on how much you can withdraw from a traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal amount, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Which precious metal is best to invest in?
This depends on what risk you are willing take and what kind of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if your goal is to make quick money, gold may not suit you. If you have time and patience, you should consider investing in silver instead.
If you don't care about getting rich quickly, gold is probably the way to go. Silver may be a better option for investors who want long-term steady returns.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- 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)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
bbb.org
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. It was also traded internationally due to its high value. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This led to a decline in demand for foreign currencies, which caused their price to increase. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. They needed to pay off debt because they had too much money coming into circulation. They sold some of their excess gold to Europe to pay off the debt.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The gold price has gone up significantly in the years since. Even though the price of gold fluctuates, it remains one the best investments you can make.
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By: David Sencil
Title: OPNX to Shut Down Amid Three Arrows Co-Founders' 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
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