Dubai cryptocurrency regulator VARA has fined 3AC founders’ OPNX $2.7 million. In addition, VARA officially condemned the exchange, which was co-founded by Kyle Davies, Su Zhu and Mark Lamb.
VARA severely fined the cryptocurrency exchange!
Dubai’s Virtual Assets Regulatory Authority (VARA) has fined crypto exchange OPNX and its founders approximately $2.8 million. OPNX was founded by Kyle Davies and Su Zhu, the founders of failed hedge fund Three Arrows Capital (3AC). Meanwhile, VARA had already reprimanded the exchange in May. Following the fall of 3AC, the exchange Davies and Zhu founded allowed investors to clear bankruptcy claims for companies like FTX and CoinFLEX. That’s why Davies and Zhu came under fire for launching the project.
The cryptocurrency exchange traded under $2 in the first 24 hours of its opening. On the other hand, trade firms that OPNX claims to be major investors in the project denied their involvement in the project.
If the exchange and the founders don’t pay the fine, other measures are on the way.
Earlier this year, VARA fined cryptocurrency exchange OPNX 10,000,000 UAE dirhams ($2.7 million) for Market Crime under regulations. The regulator said the May 2 fine “was not paid at the time of publication of this notice.”
Separate fines of approximately $54,000 were paid in full, targeting cryptocurrency exchange founders Davies, Zhu, Mark Lamb, and OPNX CEO Leslie Lamb for failing to meet the marketing and advertising standards set by the regulatory agency, according to the notice. VARA is keeping more penalties on the table to address outstanding fines. He also states that he will take other measures, including this one.
VARA officially condemns the cryptocurrency exchange
As you follow on Kriptokoin.com, VARA targeted Kyle Davies, Su Zhu and others. This action followed two strikes for operating an unregulated exchange. Dubai’s crypto regulator has officially condemned OPNX, according to an official statement. The reason for the condemnation is a stock market operation in violation of the regulations. Meanwhile, OPNX is a bankruptcy claims exchange founded by the founders of the crashed hedge fund 3AC.
The letter was sent to OPNX’s Kyle Davies and 3AC founders Su Zhu on April 18, after the regulator issued two cease and desist orders in February and March for the cryptocurrency exchange to market to residents of Dubai and the United Arab Emirates. Dubai Virtual Assets Regulatory Authority said in a statement, “VARA continues to actively monitor the situation. It is also evaluating further corrective measures that will be necessary to protect the market. Accordingly, it is investigating OPNX’s activities.” said.
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