The co-founders of the now-defunct digital asset hedge fund Three Arrows Capital (3AC), Kyle Davies and Su Zhu, find themselves embroiled in a regulatory battle as Dubai’s Virtual Asset Regulatory Authority (VARA) imposes substantial fines related to the OPNX exchange.
In a public announcement on August 16, VARA revealed its imposition of a hefty penalty of 10 million United Arab Emirates dirhams (equivalent to approximately $2.7 million USD) upon the OPNX exchange created by the founders of 3AC. The financial watchdog underscored that the penalty was levied due to multiple violations of the market regulations set forth by the authority, and remarkably, the fine remains unpaid.
Notably, VARA extended its punitive measures beyond the exchange itself, disclosing that fines amounting to 200,000 AED (approximately $54,000) were issued to key executives of OPNX. This roster includes Kyle Davies, Su Zhu, Mark Lamb, and the CEO, Leslie Lamb. These fines were imposed in connection to breaches of Dubai’s marketing, advertising, and promotions statutes. According to VARA, these individual fines have been settled, indicating compliance with the regulatory actions.
The outstanding 2.7-million-dollar fine casts a shadow of uncertainty over OPNX’s future, as VARA has signalled its intent to undertake consequential measures in response to the unpaid penalty. These actions may entail further penalties, additional fines, or even the pursuit of legal action to recover the outstanding payment. VARA affirmed that potential steps include the involvement of law enforcement agencies or referral to competent courts, as deemed appropriate in ensuring compliance with the regulatory landscape.
3AC Founded OPNX Cryptocurrency Exchange Witnesses Rapid Growth in Trading Volume Since Inception
OPNX, a cryptocurrency exchange founded earlier this year by the co-founders of 3AC and Mark Lamb, the brain behind CoinFLEX, has surged in trading volume since its inception. The exchange, which kicked off with a modest trading volume of a mere $13.64 on its first day, has since witnessed an exponential increase, boasting a staggering daily trading volume of $30 million as of late June.
This meteoric rise in trading activity underscores the market’s enthusiastic response to OPNX’s platform, as investors and traders alike flock to the exchange to capitalize on the burgeoning cryptocurrency landscape. The founders’ strategic vision and industry expertise appear to have resonated well within the crypto community, propelling OPNX to become a notable player in the ever-evolving digital asset marketplace.