Crypto claims exchange, OPNX, established by the founders of the defunct hedge fund Three Arrows Capital (3AC) – Kyle Davies, Su Zhu, and Mark Lamb – has faced a hefty penalty of nearly $2.8 million.
OPNX Hit with $2.7M Fine by Dubai’s Crypto Watchdog
This fine was levied by the Virtual Assets Regulatory Authority (VARA) in Dubai, as disclosed in a recent notice.This isn’t the first time OPNX has landed in hot water with VARA. The exchange, which was founded in the aftermath of 3AC’s demise, had been previously reprimanded by the regulatory body in May.
Backdrop of the Penalty
Davies and Zhu, in particular, attracted criticism for initiating the project. OPNX provides a platform for investors to trade in bankruptcy claims of businesses like FTX and CoinFLEX.
However, in its initial 24 hours, the exchange managed to execute trades valued at less than $2, even though some trading firms claimed to have made significant investments in the project. OPNX, on the other hand, has refuted these claims.
Details of the Fine
OPNX’s hefty fine, amounting to 10,000,000 United Arab Emirates dirhams (equivalent to $2.7 million), was imposed for committing a Market Offense as per VARA’s recently introduced regulations. The penalty, which was announced on May 2, has yet to be cleared, as noted by the regulator.
Additionally, individual fines, totaling approximately $54,000, were levied against the founders – Davies, Zhu, Mark Lamb, and the CEO of OPNX, Leslie Lamb. These fines were related to breaches of marketing and advertising standards established by VARA. Thankfully, these fines have been settled in full by the concerned parties.
Future Implications, What are we left with?
VARA has indicated its intention to adopt stringent measures, which could include imposing additional penalties, to ensure the clearance of the outstanding fines.
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