Su Zhu and Kyle Davis, co-founders of failed cryptocurrency hedge fund Three Arrows Capital (3AC), have run into new troubles running and promoting their new digital asset platform, Open Exchange, or OPNX, without getting all the money in Dubai. local license required.
According to a report published by Bloomberg, Dubai's Virtual Assets Regulatory Authority (VARA) sent written notices to Zhu and Davis, as well as two other OPNX executives. In a statement to Bloomberg, VARA said it was still investigating the exchange' s activities and reportedly assured That corrective action would be taken against the company's violations. The regulator reportedly claimed that OPNX has been promoting the exchange in the country via social media platforms without establishing the necessary restrictions for residents of Dubai and the United Arab Emirates. VARA first spotted the exchange through its marketing ads in February, attracting customers even before it launched.
VARA's latest written reprimand follows two cease and desist notices issued by the authority in February and March. VARA stated that despite the notification, they had not heard back from OPNX and issued an “investor and market alert” for the exchange a few days after the launch on April 4. The launch of OPNX and its connection to the former founder of 3AC has been a talking point in the crypto industry. The crypto community was baffled to see Zhu and Davis pitching and raising money for the new venture, even though they were being investigated for the 3AC's downfall.
Zhu and Davies distanced themselves from OPNX, reportedly telling Bloomberg, “While Kyle and I helped contribute to the original idea for OPNX, Leslie is the CEO and we are not involved in day-to-day work.” OPNX's connection to the former 3AC founder did not help its fundraising efforts. On April 24, OPNX CEO Leslie Lamb slammed several VC firms on Twitter after some reportedly pulled out of the venture. The exchange earlier claimed it was backed by firms including AppWorks, Susquehanna International Group, DRW Venture Capital , MIAX Group, China Merchants Bank International and Token Bay Capital.
