The Virtual Assets Regulatory Authority (VARA) in Dubai has issued a fine of nearly $2.8 million to crypto bankruptcy claims exchange OPNX and its founders. This follows a reprimand issued by VARA back in May. OPNX was founded by Kyle Davies and Su Zhu, the founders of the now-defunct hedge fund Three Arrows Capital (3AC). The exchange allows investors to trade bankruptcy claims for companies such as FTX and CoinFLEX.
The exchange only executed $2 worth of trades in its first 24 hours of opening, and trading firms that claimed to be major investors in the project denied involvement. VARA issued a fine of 10,000,000 United Arab Emirates dirhams ($2.7 million) to OPNX for a Market Offense under regulations issued earlier this year. The fine, issued on May 2, remains unpaid at the time of publication of this notice, the regulator said.
In addition, 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. VARA stated that it will take further action, including further penalties, to address the unpaid fines.