OPNX exchange, which was recently tagged by Dubai’s VARA (Virtual Asset Regulatory Authority) as not regulated in the UAE, has been rumored to have investors from Bahrain, in the form of the Bahrain sovereign wealth fund given it has recently raised $25 million.

According to a  tweet by BitMEXcrypto exchange founder Arthur Hayes, “A little birdie told me that OPNX has raised big money from Bahrain Sovereign Wealth Fund. They are trading via Tai Ping Shan. Be Warned. I want my fucking money.”

Bahrain’s sovereign fund Mumtalakt website didn’t show any investment in OPNX directly but it is noted that the sovereign fund is an investor in Al Waha Fund whose portfolio consists of venture capital funds which could have invested in OPNX given that some of them have invested in crypto and blockchain entities before. 

OPNX exchange  aims to tokenize users’ claims to bankrupted crypto companies, allowing them to use bankruptcy claims as collateral to trade perpetuals’.

Kyle Davies said the fundraising deal was done, but he didn’t disclose the investors. OPNX will acquire all assets of CoinFLEX including people, tech, and tokens. $FLEX will be the exchange token. As per OPNX website, “ A $20 billion market of claimants is desperately looking for a solution. This list includes FTX, Voyager, Celsius, Genesis, BlockFi, Mt Gox, and our creditors.”

According to the website, OPNX will combine the transparency of decentralized finance with the user experience of centralized finance platforms, so that traders no longer need to compromise on performance or security— allowing them to trade claims, spot and futures all on one platform, with one universal account.

OPNX is offering spot and futures trading for major tokens such as bitcoin (BTC), ether (ETH), dogecoin (DOGE) and USD coin (USDC). Claims’ trading is expected to go live in the coming weeks, according to Lamb.

CoinFLEX’s FLEX token will serve as the native token of the OPNX platform. Holders can get up to a 50% discount on trading fees with the token, which will be periodically burned, or permanently taken out of circulation. That may potentially improve value for FLEX holders in the future if demand and traction for OPNX increases and the supply gradually decrease.

Zhu Su and Kyle Davies, the founders of bankrupt hedge fund Three Arrows Capital, last month teamed with the co-founders of troubled crypto exchange CoinFLEX to create Open Exchange, calling it the “world’s first public marketplace for crypto claims trading and derivatives,” as CoinDesk reported

In an SEC Filing dated January 27th 2022, USA based Marathon digital Holdings, a digital asset mining entity, announced that it had entered into a shareholder’s agreement with FSI ( FS Innovation), the BTC mining subsidiary of UAE ADQ a sovereign fund,  to form an Abu Dhabi, ( ADGM (Abu Dhabi Global Markets) based company.

As per the filing, the joint UAE ADGM based company will establish and operate one or more mining facilities for digital assets. The business entity will be in the field of digital asset/crypto mining.

The initial phase will consist of two digital asset mining sites comprising 250 MW (megawatts) in Abu Dhabi UAE.

Marathon Holdings will own 20% of the joint company in UAE only. The cost of the project will be $406 million.

This new comes after UAE based Phoenix Technology which embarked on establishing a $2 billion crypto-mining farm in the UAE,  announced in November 2022, that the biggest crypto mining project in the region will be completed in the next six months, Q2 of 2023.  The press release at the time noted, “The project will be finalized within six months, giving the region a taste of technological advancement and development.”

In February 2022 Phoenix had announced it was part of the group of entities developing the UAE crypto mining farm in an interview with well renowned crypto and Blockchain lawyer Irena Heaver.

Crypto mining is an integral part of the development of crypto economies, and the MENA region is opening up to exactly these economies. Already the GCC and MENA region has become an attractive destination for crypto mining. 

During Binance Week 2022, Khalifa AlJaziri, AlShehhi, Commercial Affairs Regulatory Sector Projects advisor at the Ministry of Economy in UAE, claimed that the Dubai World Trade Center Authority (DWTCA) would be legislating the crypto mining sector. He stated, “We are setting the guidelines and rules needed to regulate crypto mining within this crypto framework.

The UAE is not the only country that has shown interest in crypto mining. Oman Investment Authority (OIA) took part in a $350mn equity round in Crusoe Energy Systems. The US firm helps oil and gas producers cut flaring by using stranded natural gas to power cryptocurrency mining. Crusoe systems set up operations in Oman as well.