The Dubai Virtual Assets Regulatory Authority (VARA) has officially blamed the founders of the OPNX exchange for operating an unregulated cryptocurrency exchange. The official notice was sent on April 18 to Kyle Davies And Su-Zhu, founders of the now-collapsed hedge fund Three Arrows Capital (3AC), following two cease-and-desist orders issued by the regulator in February and March. These orders were intended to end the marketing of the exchange to residents of Dubai and the United Arab Emirates.
Thorough investigation and corrective action
There VARA stated that it is actively monitoring the situation surrounding OPNX and that it continues to investigate its activities. The regulator is assessing what additional corrective action might be needed to protect the market. The blame also extends to the founders from OPNX, Mark Lamb, sudhu Arumugamand the General Manager Leslie Lamb.
Rocky start for OPNX and dubious investor claims
OPNXan exchange platform that facilitates debt trading for bankrupt companies like FTX And CoinFLEX, had a difficult start. In its first 24 hours of operation, the exchange saw less than $15 traded.
open Exchange claimed to have seen a massive increase in its trading volume and joked about the low volume on its opening day.
According to a tweet from OPNXthe volume of the exchange apparently increased to $12,398 on April 9, an increase of more than 90,000%.
We’re thrilled to announce a significant increase in trading volume at OPNX! On day 1, our volume was a hard-fought $13.64. Today on day 5, it has surged to a magnificent $12,398. That’s a remarkable percentage increase of over 90,000%. We are incredibly proud of our team’s hard… pic.twitter.com/0rG9F28xzl
—OPNX
(@OPNX_Official) April 10, 2023
(@OPNX_Official) Moreover, OPNX asserted that trading and investment firms Susquehanna International Group And DRWas well as the venture capital company Nascent, were “major investors” in the project. However, these companies have all denied any involvement with the exchange.
Legal issues for 3AC founders
In addition to issues related to the exchange OPNX, Kyle Davies And Su-Zhu faced legal challenges stemming from their fiasco at Three Arrows Capital. In March, the duo faced court orders in both the British Virgin Islands and the United States. They were accused of refusing to participate in proceedings related to the company’s bankruptcy, further complicating the situation for the founders and their new company.
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