VARA is considering “referring the <OPNX's unpaid fine> to any law enforcement agency(ies) or competent courts.”
Kyle Davies and Su Zhu, founders of the now-defunct digital asset hedge fund 3AC, found themselves under scrutiny from Dubai’s Virtual Asset Regulatory Authority (VARA).
On August 16th, VARA released an official notice detailing fines connected to the OPNX exchange.
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According to the VARA, the crypto exchange, under the leadership of 3AC founders, violated several market regulations, resulting in a hefty penalty of 10 million United Arab Emirates dirhams (around $2.7 million).
Yet, the financial penalties weren't exclusive to the crypto exchange. Additional fines were directed at OPNX executives Davies, Zhu, Mark Lamb, and the crypto exchange's CEO, Leslie Lamb.
All entities received a fine of 200,000 AED (roughly $54,000) for breaching Dubai's marketing, advertising, and promotions regulations. According to VARA, executives promptly paid their duties.
However, the $2.7 million penalty continues to be unpaid. In response to OPNX avoiding paying the fine, VARA has signaled potential escalations, ranging from further fines to active pursuits to retrieve the owed amount. In the words of VARA, they are contemplating “referring the matter to any law enforcement agency(ies) or competent courts.”
Tracing back the origins of OPNX, the platform was a brainchild of the 3AC co-founders and Mark Lamb, the mind behind CoinFLEX. Despite a humble debut with a trading volume of merely $13.64, OPNX experienced exponential growth, boasting a daily trade volume of $30 million by the end of June.
Highlighting Dubai's regulatory landscape, VARA's assertive stance on breaches has been evident. A significant example was when BitOasis saw its license suspended due to non-compliance with specific regulator-imposed conditions.
Dubai's robust regulatory actions underline the emirate's dedication to fostering a compliant and transparent cryptocurrency environment, ensuring all entities operate within the set legal parameters.
