Dubai crypto regulator sends reprimand letter to OPNX founders
Recently uncovered reports indicate that Dubai authorities have reprimanded 3AC co-founders for illegally promoting the OPNX exchange.
3AC founders oversaw the fall of one of the largest crypto hedge funds last year. Reports indicate that Kyle Davies and Su Zhu were later engaged in founding another crypto-focused network, OPNX.
However, based on recent reports, the 3AC co-founders and others who co-founded OPNX recently received a reprimand from Dubai crypto regulators.
The Virtual Asset Regulator Authority in Dubai sent a reprimand letter warning them of operating an unregulated crypto exchange and promoting it illegally in the UAE and Dubai. The reprimands were reportedly sent on April 18.
Between February and March, regulators sent two cease-and-desist orders to OPNX. The Virtual Assets Regulatory Authority (VARA) of Dubai released a statement saying:
“VARA is continuing to actively monitor the situation and investigate OPNX’s activity to assess further corrective measures that may be required to protect the market.”
More reports allege that other OPNX co-founders, including Mark Lamb and Sudhu Arumugam, received the reprimand. Moreover, the CEO of the network Leslie Lamb also received a reprimand.
Both Zhu and Davies have been subject to several regulators’ questions in the recent past. Other reports dictate that both Zhu and Davies recently received court orders for allegations associated with the fall of 3AC. The court orders came from both U.S. and British Virgin Islands regulators.
OPNX is not yet a success
OPNX was created to capitalize on the failure of some crypto networks, helping investors recover funds instantly by trading their bankruptcy claims. OPNX began with FTX and CoinFLEX claims.
Based on reports, the exchange has yet to see any success. Reports indicate that in the first 24 hours of the exchange’s life, only $2 was traded. Despite its slow start, OPNX was praised for having larger prospects than 3AC owing to the large backing.
Reports alleged that the trading networks DRW and Susquehanna International Group (SIG), DRW, and venture-capital firm Nascent were core investors in the new OPNX project. However, recent reports allege that some investors have denied involvement with the company.