The founders of 3AC’s OPNX Exchange, Kyle Davies, Su Zhu, and others, have been formally reprimanded by Dubai’s Virtual Assets Regulatory Authority for running an unregulated exchange, following two cease-and-desist letters.
Dubai’s cryptocurrency regulator has issued a formal notice to OPNX, a bankruptcy claims exchange created by the founders of the failed hedge fund Three Arrows Capital (3AC), for running an unregulated exchange. Kyle Davies, Su Zhu, and others were targeted by the Virtual Assets Regulatory Authority, following two cease-and-desist letters.
Dubai’s crypto regulator sent a notice to OPNX, a bankruptcy claims exchange set up by the founders of 3AC, Kyle Davies and Su Zhu, for operating an unregulated exchange. This came after the regulator had issued two cease-and-desist orders to the exchange in February and March for promoting the exchange to UAE residents.
Dubai’s Virtual Assets Regulatory Authority (VARA) stated that it is keeping a close watch on the situation and looking into the activities of OPNX to decide if further corrective measures are necessary to safeguard the market.
The Dubai crypto regulator also sent the formal reprimand notice to the CEO of OPNX, Leslie Lamb, and to the founders Mark Lamb and Sudhu Arumugam.
OPNX, an exchange allowing trading of bankruptcy claims for companies such as FTX and CoinFLEX, has had a difficult start, with less than $2 traded on its first day. Additionally, the exchange has faced denials from firms it claimed were “major investors,” including Susquehanna International Group (SIG), DRW, and Nascent venture capital firm.
Last March, Kyle Davies and Su Zhu, the founders of Three Arrows Capital, were accused of not participating in the proceedings related to their hedge fund’s bankruptcy. The allegations led to court orders against them in both the U.S. and the British Virgin Islands.
As per the information from CoinMarketCap, CoinFLEX’s FLEX token decreased by 5% after Bloomberg reported VARA’s news earlier on Tuesday.
