August 17, 2023

Dubai’s VARA Fines 3AC Founders over OPNX Exchange



Kyle Davies and Su Zhu, the individuals behind the now defunct digital asset hedge fund Three Arrows Capital (3AC), have been issued a fine by Dubai’s regulatory body that oversees the cryptocurrency market in relation to the OPNX exchange.

Dubai’s Virtual Asset Regulatory Authority (VARA) has released a notice regarding fines for the OPNX exchange. VARA has indicated that the exchange has violated market regulations resulting in a fine of 10 million United Arab Emirates dirhams (equivalent to approximately $2.7 million). The penalty, however, still needs to be settled.

VARA has made an announcement regarding the OPNX and its executives, including Davies, Zhu, Mark Lamb, and CEO Leslie Lamb. The regulator has imposed a fine of 200,000 AED (approximately $54,000) for violations of Dubai’s marketing, advertising, and promotions laws. According to VARA, the individuals in question have already fulfilled their obligations and paid the fine imposed by the regulator.

If the $2.7 million fine remains unpaid, VARA will determine appropriate actions against OPNX, which may include additional penalties, fines, or legal action to recover the payment. This could involve referring the matter to law enforcement agencies or competent courts.

Earlier this year, OPNX was established by the co-founders of 3AC and Mark Lamb, the founder of CoinFLEX. On its initial day, the exchange experienced a trading volume of only $13.64. However, by the end of June, the daily trading volume had increased significantly to $30 million.

In July, (VARA) decided to suspend the license of crypto exchange BitOasis for not meeting mandated conditions. VARA issued two market alerts regarding ongoing supervisory controls and enforcement actions initiated against BitOasis.

In February, VARA issued new virtual asset service providers (VASPs) guidelines to ensure economic sustainability and cross-border financial security.

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