Dubai Regulator Sanctions Founders Of Crypto Exchange Opnx

8/16/2023 2:00:45 PM

(MENAFN- CoinXposure) Kyle Davies and Su Zhu, the founders of the defunct digital asset hedge fund three arrows capital (3ac), are now facing a sanction issued by Dubai's dedicated crypto regulator regarding the OPNX exchange.

The Virtual Asset Regulatory Authority (VARA) of Dubai issued a notice of penalties for the OPNX exchange on August 16.

Excerpt of the document posted by Dubai's crypto regulator. Source: VARA

For violations of its market regulations, the regulator imposed a fine of 10 million united arab emirates dirhams (approximately $2.7 million) and noted that the fine remains outstanding.

In addition to the exchange, VARA announced that it issued a sanction of 200,000 AED (approximately $54,000) to executives of the OPNX, including Davies, Zhu, Mark Lamb, and Leslie Lamb, the CEO.

The penalty was issued for violations of Dubai's marketing, advertising, and promotion laws. According to the governing body, the aforementioned individuals have already paid their fees.

As the $2.7 million sanction remains unpaid, VARA stated that it would“determine whether or not OPNX should be subject to repercussions.”

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The regulator emphasized that it may impose additional penalties or sanctions or even take action to recover the payment.

According to VARA, this may involve“referring the matter to any law enforcement agency(s) or competent courts.” Earlier this year, OPNX was founded by the 3AC co-founders and CoinFLEX founder Mark Lamb.

The trading volume on the exchange's first day was only $13.64. By late June, however, the exchange's daily trading volume had skyrocketed to $30 million.

This year, the dubai regulator has taken a firm stand against crypto violations. BitOasis, the first exchange to receive an operating license in the emirate, had its license revoked by VARA on July 10 for failing to satisfy regulatory requirements by a specified deadline.

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