Dubai’s Virtual Assets Regulatory Authority (VARA) Slaps Co-Founders of OPNX with $2.7 Million Fine
Dubai’s Virtual Assets Regulatory Authority (VARA) has imposed a hefty $2.7 million fine on the co-founders of OPNX, a crypto exchange. The co-founders, Kyle Davies and Su Zhu, who previously established the hedge fund Three Arrows Capital (3AC), have allegedly not paid the fine of AED10 million ($2.7 million) for a market offense. Dubai authorities have stated that if the fine remains unpaid, OPNX will face further consequences, including additional fines and penalties.
Key Points:
- OPNX co-founders, Kyle Davies and Su Zhu, have been fined $2.7 million by VARA.
- Individual fines of AED200K ($54,451) were also imposed on the founders for failing to meet regulatory marketing requirements.
- The founders have paid their individual fines, but the fine against OPNX remains unpaid.
- VARA has warned that further fines and penalties may be imposed if the payment is not made.
- OPNX is a crypto futures exchange that allows trading of bankrupt cryptocurrency claims using the FLEX token.
The action against OPNX represents VARA’s largest published fine to date and is part of the UAE’s efforts to be removed from the Financial Action Task Force’s “gray list” of jurisdictions that are not doing enough to combat illicit funds.
Hot Take:
The failure of OPNX co-founders to pay the imposed fine raises concerns about their commitment to regulatory compliance. Dubai’s Virtual Assets Regulatory Authority is taking a strong stance to enforce regulations and ensure the integrity of the crypto market. This incident serves as a reminder to all crypto exchanges and projects to adhere to regulatory requirements to avoid severe penalties and reputational damage.
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