OPNX Exchange Fined $2.8 Million by VARA for Market Offense
The OPNX exchange, co-founded by Kyle Davies, Su Zhu, and Mark Lamb, has been formally reprimanded and fined by Dubai’s Virtual Assets Regulatory Authority (VARA). The exchange, which allows investors to trade bankruptcy claims for companies such as FTX and CoinFLEX, was already reprimanded by VARA in May. The recent fine amounts to nearly $2.8 million and remains unpaid at the time of publication.
Key Points:
- OPNX exchange fined $2.8 million by VARA for a Market Offense
- Co-founders Kyle Davies and Su Zhu previously reprimanded in May
- OPNX executed under $2 worth of trades in its first 24 hours
- Trading firms claimed to be major investors, but OPNX denied involvement
- Separate fines for failing to meet marketing and advertising standards were paid in full
VARA has also imposed separate fines of around $54,000 on founders Davies, Zhu, Mark Lamb, and OPNX CEO Leslie Lamb for not meeting marketing and advertising standards. However, these fines have been paid in full. VARA has stated that it will take further action, including additional penalties, to address the unpaid fines.
Hot Take:
The fine imposed on OPNX and its founders by VARA for a market offense highlights the need for regulatory compliance in the crypto industry. It serves as a reminder to crypto readers and investors to carefully evaluate the credibility and compliance of exchanges before engaging with them. This incident also underscores the importance of transparency and accountability in the crypto space to maintain trust and protect investors’ interests.
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