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The founders of the collapsed digital asset hedge fund Three Arrows Capital (3AC) Kyle Davies and Su Zhu are now facing a fine issued by Dubai\u2019s dedicated crypto regulator over the OPNX exchange.\u00a0<\/p>\n
On Aug. 16, Dubai\u2019s Virtual Asset Regulatory Authority (VARA) published<\/a> a notice of fines for the OPNX exchange. The regulator said that it has issued a fine of 10 million United Arab Emirates dirhams (around $2.7 million)\u00a0for violations of its market regulations<\/a>\u00a0and noted that the fine remains unpaid. <\/p>\n Apart from the exchange, VARA also announced that it also issued a fine of 200,000 AED (around $54,000) to executives of the OPNX, including Davies, Zhu, Mark Lamb and its CEO, Leslie Lamb. The fine issued was for violations of the marketing, advertising and promotions laws of Dubai. According to the regulator, the individuals mentioned have already paid their dues.\u00a0<\/p>\n As the $2.7 million fine remains unpaid, VARA said that it would \u201cdetermine consequential actions warranted against OPNX.\u201d The regulator highlighted that it may include further penalties or more fines or even take the necessary actions to recover the payment. This may include \u201creferring the matter to any law enforcement agency(ies) or competent courts,\u201d according to VARA. <\/p>\n Related: <\/em><\/strong>Lawyer explains new federal virtual asset law in the United Arab Emirates<\/em><\/strong><\/a><\/p>\n OPNX was founded earlier this year by the 3AC co-founders as well and CoinFLEX founder Mark Lamb. On its first day, the exchange showed a trading volume of only $13.64. However, the exchange\u2019s daily trading volume had\u00a0shot up to $30 million<\/a> by late June. <\/p>\n The Dubai regulator has been taking a firm stance on crypto violations this year. On July 10, VARA suspended the license<\/a> of crypto exchange BitOasis, the first exchange to get an operating license in the emirate, for not meeting mandated conditions within a deadline by the regulator. <\/p>\n