The crypto exchange of the founders of the bankrupt hedge fund 3AC — OPNX — received предупреждение from Dubai’s Virtual Asset Regulatory Authority (VARA).
According to the statement, on 18 April the regulator sent a written reprimand to the company’s co-founders Su Zhu, Kyle Davies, Mark Lamb, Sudhu Arumugam, and CEO Leslie Lamb for operating in the emirate without the mandatory license.
VARA also accused them of marketing the trading platform and the native FLEX token.
The regulator noted that on 27 February it sent the organisation and its founders a cease-and-desist order prohibiting the creation of a company in Dubai. In March the organisation received a further notice.
«VARA отмечает, что впоследствии на веб-сайт OPNX были наложены определенные ограничения в отношении жителей ОАЭ. Однако такие меры не применялись в полной степени ко всем каналам связи биржи или рекламным и маркетинговым материалам, которые впоследствии оставались доступными для жителей», — подчеркнуло ведомство.
The authorities will continue to investigate OPNX’s conduct to assess any further corrective measures that may be required.
Plans by Davies and Zhu to raise $25 million for the launch of a cryptocurrency exchange, with active involvement from representatives of the bankrupt CoinFLEX, first emerged in January.
Later Zhu announced the opening of a waitlist for platform access. According to him, OPNX is a way to “make amends for past mistakes.” Many community members greeted the project with scepticism and indignation.
In late April, the platform’s chief Leslie Lamb criticised investors who deny involvement with the crypto exchange.