3AC Founders' OPNX Fined $2.7M by Dubai Crypto Regulator

Crypto bankruptcy claims exchange OPNX and its founders has been fined nearly $2.8 million by Dubai's Virtual Assets Regulatory Authority (VARA), a Wednesday notice shows.

Set up by the founders of failed hedge fund Three Arrows Capital (3AC), Kyle Davies and Su Zhu, OPNX was already reprimanded by VARA back in May. Created in the wake of 3AC's fall, Davies and Zhu came under fire for starting the project, which allows investors to trade bankruptcy claims for companies such as FTX and CoinFLEX.

The exchange executed under $2 worth of trades in its first 24 hours of opening while trading firms claimed to be major investors in the project by OPNX denied involvement.

OPNX was fined 10,000,000 United Arab Emirates dirhams ($2.7 million) for a Market Offense under regulations issued earlier this year by VARA. The fine, issued on May 2, "remains unpaid at the time of publication of this notice," the regulator said.

Separate fines of around $54,000 targeting founders Davies, Zhu, Mark Lamb and OPNX CEO Leslie Lamb for failing to meet marketing and advertising standards set by the regulator were paid in full by the parties, according to the notice.

VARA said it will take further action, including further penalties, to address the unpaid fines.

Read more: 3AC Founders’ OPNX Exchange Formally Reprimanded by Dubai Crypto Regulator