3AC founders fined by Dubai regulator over OPNX exchange

The founders of the collapsed digital asset hedge fund Three Arrows Capital (3AC) Kyle Davies and Su Zhu are now facing a fine issued by Dubai’s dedicated crypto regulator over the OPNX exchange. 

On Aug. 16, Dubai’s Virtual Asset Regulatory Authority (VARA) published a notice of fines for the OPNX Exchange. The regulator said that it has issued a fine of 10 million dirhams, around $2.7 million for violations of its market regulations, and noted that the fine remains unpaid.

Apart from the exchange, VARA also announced that it also issued a fine of 200,000 dirhams (around $54,000) to executives of the OPNX, including Davies, Zhu, Mark Lamb and its CEO Leslie Lamb. The fine issued was for violations of the marketing, advertising and promotions laws of Dubai. According to the regulator, the individuals mentioned have already paid their dues. 

As the $2.7 million fine remains unpaid, VARA said that it will "determine consequential actions warranted against OPNX." The regulator highlighted that it may include further penalties or more fines or even take the necessary actions to recover the payment. This may include “referring the matter to any law enforcement agency(ies) or competent courts” according to VARA.

Related: Lawyer explains new federal virtual asset law in the United Arab Emirates

OPNX was founded earlier this year by the 3AC co-founders as well and CoinFlex founder Mark Lamb. On its first day, the exchange showed a trading volume of only $13.64. However, the exchange's daily trading volume shot up to $30 million by late June.

The Dubai regulator has been taking a firm stance on crypto violations this year. On July 10, VARA suspended the license of crypto exchange BitOasis, the first exchange to get an operating license in the emirate, for not meeting mandated conditions within a deadline by the regulator.

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