Dubai authorities sent written reprimand to OPNX Exchange founders Dubai authorities sent written reprimand to OPNX Exchange founders
The reprimand was sent to five people, including founders of defunct hedge fund Three Arrows Capital and OPNX, Kyle Davies and Su Zhu.
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Updated: May. 2, 2023 at 4:06 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Dubai’s Virtual Assets Regulatory Authority (VARA) issued a written reproof to the four founders of OPNX Exchange and its CEO Leslie Lamb on April 18, according to a formal notice.
The four founders include Mark Lamb, Sudhu Arumugam, and founders of failed crypto hedge fund Three Arrows Capital, Su Zhu, and Kyle Davies.
As per the authorities, OPNX Exchange is unlicensed and unregulated. Therefore, the named individuals, including Zhu and Davies are breaking the law by operating and promoting it.
VARA first issued a cease and desist order for the establishment and marketing of the OPNX Exchange on February 27, according to the notice. Subsequently, the authorities found that the OPNX was restricted to the residents of the United Arab Emirates (UAE). However, the restrictions were not imposed on the marketing and promotion material of OPNX, which remained accessible to the residents, the authorities noted.
On March 10, VARA issued a second cease and desist letter, despite which, OPNX Exchange was launched on April 4. Thereafter, VARA issued an Investor and Marketplace Alert on April 12, warning investors that OPNX Exchange was unregulated.
In its notice, the Dubai authorities noted:
“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.”
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In this article
Three Arrows Capital
Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, collapsed due to poor risk management, recklessness in dealing with business partners and a significant portion of greed.
Kyle Davies is an entrepreneur and businessman based in Singapore who co-founded Three Arrows Capital (3AC), a bankrupt cryptocurrency hedge fund.
Mark Lamb is the founder of OPNX and CEO of CoinFLEX, a crypto futures exchange that offers permissionless listing of perpetual futures tokens.