Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a written notice to the co-founders of Three Arrow Capital, Su Zhu, and Kyle Davies, for operating and promoting a digital-asset exchange, OPNX, without the necessary local license.
According to Bloomberg, VARA is currently investigating the activities of OPNX and has stated that appropriate corrective actions will be taken against the firm for breaching laws. The regulatory body claimed that OPNX was using social media platforms to solicit and collect personal data from the public to participate in its upcoming exchange without appropriate restrictions for residents of Dubai/UAE.
VARA sent two cease-and-desist orders to OPNX in February and March 2023. The exchange refused to respond to the orders and went ahead with its launch on April 4. After the company’s launch, VARA issued an investor and marketplace alert against the exchange.
The relationship between OPNX and the former founders of a collapsed cryptocurrency hedge fund has a point of discussion in the cryptocurrency industry since the exchange’s launch.
Although Zhu and Davies contributed to the initial concepts for OPNX, they have distanced themselves from the exchange, stating that Leslie Lamb is solely responsible for its operations, and they are not actively involved in its day-to-day activities.
Leslie Lamb told Bloomberg via a WhatsApp message that customers from the UAE have never had the ability to open an account on OPNX at any given time. Despite its association with the former Three Arrow Capital founders, OPNX has struggled to raise funds, as evidenced by Lamb’s Twitter outburst on April 24, 2023, in which she criticized several venture capital firms for reportedly withdrawing their support from the venture.
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