Dubai Virtual Assets Regulatory Authority (VARA) has sent a written notice to the founding partners of OPNX.
Three Arrow Capital co-founders, Su Zhu and Kyle Davies, received a warning for operating and promoting the new digital asset exchange OPNX in Dubai without obtaining the necessary local licenses, Bloomberg reported. Su Zhu and Kyle Davies, as well as two other co-founders and managing directors of OPNX, were given a written reprimand on April 18, according to a statement from the Dubai Virtual Assets Regulatory Authority.
VARA: This Is Not The First Notification
VARA said they are still investigating the exchange’s activities and have assured that corrective action will be taken against the firm for violating the law.
The regulator claimed that OPNX was busy marketing the exchange via social media platforms without following the rules required for Dubai citizens. VARA underlined that they sent a reprimand letter to the company in February and March before, and they did not receive any response.
OPNX was founded this year by Su Zhu, Kyle Davis, Mark Lamb and Sudhu Arumugam. The crypto community was stunned to hear that Zhu and Davies were promoting and raising funds for a new venture, even though they are currently under investigation for Three Arrow Capital’s bankruptcy.
Su Zhu told Bloomberg: “Kyle and I contributed to the idea stage for OPNX. Leslie is more of a CEO and we are not involved in the day-to-day business.”
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