Opyn’s Co-founders Departure from Crypto
The co-founders of Opyn, a well-known DeFi options protocol, have recently announced their departure from the crypto industry. This decision follows charges filed against Opyn by the Commodity Futures Trading Commission (CFTC) in September.
CEO Zubin Koticha and Alexis Gauba, the co-founders of Opyn, made this announcement. Koticha expressed his disappointment and surprise at the turn of events. He mentioned that they had spent six years working on innovative projects that would not have been possible in traditional finance. Despite their expectation of a lifelong career in crypto, they have decided to leave the industry.
Andrew Leone, formerly a vice president at Nomura with expertise in VIX and structured volatility trading, will take over as Opyn’s new CEO. Koticha described Leone as an MIT-engineered Wall Street derivatives trader and a DeFi algorithmic market maker.
CFTC Fines Opyn $250,000 for Regulatory Violations
In September, the CFTC filed and settled charges against Opyn and two other DeFi entities for various violations. These included registration failures, not adopting a customer identification program, and offering leveraged and margined retail commodity transactions in digital assets without proper authorization.
As a result of these charges, Opyn was fined $250,000 and ordered to cease and desist from violating the Commodity Exchange Act and CFTC regulations. The company is based in California and is known for its innovative blockchain-based digital asset protocol.
Hot Take: The Impact of Regulatory Actions on Crypto Startups
The departure of Opyn’s co-founders highlights the impact that regulatory actions can have on crypto startups. It demonstrates the need for clear compliance measures to avoid fines and legal repercussions. The appointment of Andrew Leone as the new CEO indicates the company’s determination to move forward despite these challenges.
The departure of Opyn’s co-founders sends a strong message about the importance of regulatory compliance in the crypto industry. It also underscores the resilience of DeFi startups in adapting to regulatory changes.
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