OPNX, the bankruptcy claims exchange associated with the founders of the now-defunct hedge fund Three Arrows Capital, has initiated a defamation lawsuit against venture capitalist Mike Dudas, as revealed by Kyle Davies, co-founder of Three Arrows, and New York State court records. A summons notice filed in early June asserts that Dudas made defamatory remarks about the company during the period from February to March 2023, which coincided with the introduction of Davies and his partner Su Zhu’s exchange venture. However, the document does not specify the exact nature of Dudas’ alleged defamatory comments.
Dudas, a prominent figure in the cryptocurrency industry who operates 6th Man Ventures and previously served as the head of crypto media outlet The Block, is being defended by crypto attorney Stephen Palley from Brown Rudnick. Palley stated, “We are proud to represent Mike Dudas in defense of this lawsuit filed by 3 Arrows Capital’s ‘ecosystem partner’ OPNX. In order to prove defamation, you have to show, among other things, reputational damage. We look forward to seeing how the plaintiff plans to prove that in this case.”
Meanwhile, OPNX has recently introduced a new “meme token” named Justice tokens (JT), aiming to provide benefits to crypto communities that have suffered from “defamation” by granting them a portion of settlements. The company launched its first such token, called $DUDAS, earlier this month. In a white paper, OPNX describes JT tokens as worthless “meme tokens with no intrinsic value, no backing, and no expectation of return.” OPNX retains the sole discretion to distribute the proceeds from defamation settlements to certain owners of JT tokens, namely OX token stakes (OX being the native token of OPNX), as well as owners of the Miladies NFT. The white paper argues that Miladies NFT owners have endured “long-term defamation” and should receive some upside through JT tokens due to their persistent dedication to promoting moral virtue in an era where the majority cater to social media algorithms.