Controversial Three Arrows Capital (3AC) founders Su Zhu and Kyle Davies have been issued a written reprimand by the Dubai Virtual Assets Regulatory Authority (VARA) after allegedly promoting and operating a new crypto exchange called OPNX without a proper license.
the VARA was established as the sole regulating authority for all digital asset trading activities in the country. However, the OPNX exchange allegedly failed to obtain the required operating license.
3AC’s founders are in the spotlight again after the collapse of their previous hedge fund
Su Zhu and Kyle Davies, co-founders of failed 3AC cryptocurrency hedge fund, caught the attention of Dubai regulator after ignoring the local license required to operate the new OPNX exchange.
like mentioned Per Bloomberg, VARA’s written reprimand to the founders came after a twice decommissioning notice to the OPNX exchange.
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The first cease and desist order was sent to OPNX Exchange on February 27, and was followed by another order on March 10, 2023.
However, it was noted in the report that the OPNX exchange failed to comply with the notifications by initiating the launch and commencement of trading operations on April 4, 2023.
Following the breach of compliance, VARA was reported to have issued an “Investor and Market Alert” regarding OPNX to inform users of the platform’s non-compliance issues.
However, in the report, VARA also released statements regarding its ongoing investigation into OPNX activity to “evaluate further corrective action that may be required.”
Su Zhu and OPNX CEO Leslie Lamb give a response
3AC’s founder, Su Zhu, and CEO of OPNX recently responded to recent developments that led to the Dubai regulator’s reprimand.
According to Bloomberg, OPNX CEO Leslie Lamb has reportedly said that the trading company, OPNX, “has not done any marketing and promotion targeting Dubai or the UAE in general” and that OPNX is currently cooperating with the VARA investigation.
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The report also added that Leslie Lamb said in a WhatsApp message that “at no time were UAE customers able to open an OPNX account.”
Leslie Lamb also believes that the trading platform and exchange, OPNX, has not broken any rules whatsoever.
3AC founder Su Zhu also reportedly made a statement in a separate letter saying, “While Kyle and I helped contribute ideas for OPNX, Leslie is very much the CEO, and we don’t get involved day-to-day.”
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