CoinFLEX Creditors Accuse OPNX of Unlawful Asset Misappropriation
Summary:
Creditors of cryptocurrency exchange CoinFLEX are alleging that OPNX, a recently established crypto exchange, was formed using CoinFLEX's assets without their permission. As per the allegations, OPNX co-founder and former CoinFLEX CEO, Mark Lamb, is accused of diverting these assets to benefit OPNX at the expense of CoinFLEX creditors. Lamb and other OPNX founders rebut these claims, and legal proceedings continue.
Crypto futures exchange CoinFLEX creditors have lodged complaints against OPNX, a newly founded crypto exchange, agreeing that it was built using CoinFLEX's resources without their commitment. The complaint filed in the High Court of Hong Kong by CoinFLEX creditors points the finger at OPNX co-founder and ex-CEO Mark Lamb for allegedly misusing CoinFLEX's resources, intellectual property and other technologies. The creditors suggest Lamb used these resources to boost OPNX contrary to his responsibilities to CoinFLEX creditors.
They argue that Lamb was focusing his energies on launching OPNX while being CEO of CoinFLEX. They accuse him of leading business opportunities and clients to his new platform, unlawfully using assets that were supposed to be for the creditors, falsely promoting OPNX partnerships with CoinFLEX creditors, leaking trade secrets, enticing staff to defect to OPNX, creating false nondisclosure agreements, and acting in ways detrimental to the creditors.
The legal action was pursued in Hong Kong due to the CoinFLEX's user terms and conditions requesting any disputes be settled there, despite the firm being based in Seychelles. Also, the charges against OPNX are yet to be validated in Hong Kong's High Court. Liquidity Technologies and Liquidity Technologies Software, the companies bringing the claim, are listed as plaintiffs, with the first acting as CoinFLEX's original operating entity based in Seychelles.
In the early part of the year, OPNX confirmed the authenticity of a pitch deck that was publicly leaked. This listed Davies, Zhu, Lamb, and Sudhu Arumugam as the co-founders of OPNX. Zhu was later arrested overseas in the Changi International Airport of Singapore for refusing to comply with a local court order related to 3AC's bankruptcy proceedings. Davies was then sentenced to four months imprisonment for contempt of court but was not in Singapore's jurisdiction at the time of his sentencing. He has since been seen in Bali, Indonesia.
In April, upon starting its operations, OPNX rebuffed the criticism about its development. It defended its case by stating the quick cash sale of claims put forth by creditors would be beneficial for them and bankrupt companies.
However, claims have been made by creditors that OPNX used CoinFLEX's branding without their consent. In recent discussions, a CoinFLEX creditor, known as 'Kirill,' delved into further details about this complaint. 'Kirill' claimed to lose most of his net worth after CoinFLEX stopped processing withdrawals.
Findings suggest that after exhausting their resources, 'Kirill' and other creditors formed an impromptu committee to deliberate on measures for their now insolvent company, which included discussions with CoinFLEX's initial investors. Ultimately, they decided to reorganize the business and reopen the exchange.
'Kirill' revealed that during the deliberations, he discovered Lamb's discussions with Davies and Zhu about investing in their new company. The 3AC co-founders were however skeptical about getting involved in the project due to CoinFLEX's ongoing restructuring. CoinFLEX's restructuring was officially approved on March 7.
Lamb's action against the creditor's interests led them to file a legal representation against him to avoid his control of the company. The counteraction issued by the court forbade Lamb from assuming any decision-making role for CoinFLEX without the explicit endorsement of the board.
On the last day of October, OPNX presented a 'Creditor Tender Offer' allowing CoinFLEX creditors to equally receive 25% equity in OPNX, but would have to commit the native OX tokens for a decade. Nonetheless, 'Kirill' disputed the legality of the tender offer, arguing that it lacks the required financial information to accept the offer as an investor.
Roger Ver, a famous crypto investor, received a court order in Seychelles stating CoinFLEX accused him of defaulting on an active margin arrangement. Ver refutes the accusation, blaming CoinFLEX for revealing his trading positions, leading to third-party trading against him. Ver reportedly gained back most of his money from these parties and denied owing CoinFLEX the initial claim of $82 million. He maintained he's been owed money since and claimed to be a significant victim.
However, OPNX has seen significant growth since its launch in April. It introduced its credit currency "oUSD" for margin trading and secured a Lithuania license for EU spot trading. As per Coingecko, it presently manages over $32,000 in spot trading volume and over $82 million in derivatives each day. Proceedings against OPNX co-founders Davies and Zhu continue.
Published At
11/23/2023 1:00:00 PM
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