Posted by • Dubai’s Virtual Asset Regulator Authority (VARA) has issued a reprimand letter to the founders of OPNX, a crypto exchange network.
• The letter was in response to the founders illegally promoting their exchange in the UAE and Dubai.
• The co-founders, including Kyle Davies and Su Zhu, have been subject to several regulators’ questions in the past regarding the fall of 3AC.
Dubai Crypto Regulator Reprimands OPNX Founders
Recently uncovered reports indicate that Dubai authorities have reprimanded 3AC co-founders for illegally promoting the OPNX exchange. The Virtual Asset Regulator Authority (VARA) of Dubai sent a reprimand letter warning them of operating an unregulated crypto exchange and promoting it illegally in the UAE and Dubai. The cease-and-desist orders were reportedly sent on April 18th.
3AC Co-Founders Involved
The 3AC co-founders at the center of this controversy are Kyle Davies and Su Zhu who oversaw the fall of one of the largest crypto hedge funds last year. Reports indicate that they later founded another crypto-focused network, OPNX, which was created to capitalize on some failed networks by helping investors recover funds instantly by trading their bankruptcy claims.
Other Co-Founders Also Reprimanded
Reports allege that other OPNX co-founders Mark Lamb and Sudhu Arumugam received similar letters as well as CEO Leslie Lamb. Furthermore, both Zhu and Davies have been subject to several regulators’ questions in regards to the fall of 3AC with court orders coming from both U.S. and British Virgin Islands regulators.
OPNX Struggling To Get Off Ground
Despite its backing from large investors such as DRW, Susquehanna International Group (SIG), DRW, venture capital firm Nascent; reports indicate that in its first 24 hours only $2 was traded on OPNX making it difficult for it to get off ground.
Conclusion
It appears that Dubai regulators have taken action against those associated with illegal activity related to cryptocurrency exchanges within their jurisdiction with multiple individuals receiving reprimands letters from VARA including those associated with OPNX & 3AC networks respectively