Kyle Davies and Su Zhu, the founders of the now-defunct digital asset hedge fund Three Arrows Capital (3AC), are currently facing a fine from Dubai's cryptocurrency regulator, the Dubai Virtual Assets Regulatory Authority (VARA), regarding the OPNX exchange.
On August 16, VARA issued a notice of fine against the OPNX exchange, imposing a penalty of 10 million AED (approximately $2.7 million USD) for violating market regulations. The regulator highlighted that the fine remains unpaid. In addition to the exchange, VARA has Also finned OPNX executives, including Kyle Davies, Su Zhu, Mark Lamb, and CEO Leslie Lamb, for violating Dubai's Marketing, Advertising, and Promotions Law. The regulator noted that the individuals except Davies and Zhu have paid their fines.
With the 2.7 million USD fine still outstanding, VARA has indicated that it is prepared to take further action against OPNX. The regulatory authority emphasized that this could include additional penalties, fines, or necessary steps to recover the unpaid amount. t also mentioned the possibility of involving law enforcement agencies or competent courts in the matter.
OPNX, co-founded by Mark Lamb, a co-founder of 3AC and founder of CoinFLEX, was established earlier in the year. Despite a modest trading volume of $13.64 on its launch day, the exchange's daily trading volume escalated to $30 million by the end of June. In recent times, Dubai's regulatory authorities have shown a strong stance against cryptocurrency-related violations. In July, VARA suspended the license of the BitOasis cryptocurrency exchange, the first such licensed exchange in the emirate, due to failure to meet prescribed conditions within the set deadline.
