Do you really have to pay? 3AC founder's exchange OPNX fined 2.7 million AED by Dubai authorities

According to a report by Coindesk, the founders of the bankrupt cryptocurrency hedge fund 3AC, who established the debt trading platform OPNX in April this year, have been fined nearly $2.8 million by the Dubai cryptocurrency regulator VARA for market misconduct. Additionally, individuals associated with OPNX have also been fined $55,000 each. VARA stated that they will continue to pursue the completion of the fine payments.

OPNX Fined Millions of Dollars

According to a notice issued by the Dubai Virtual Assets Regulatory Authority (VARA) yesterday, warnings were issued in April this year to OPNX and its founders Kyle Davies, Su Zhu, Mark Lamb, and current CEO Leslie Lamb regarding market misconduct. OPNX is facing a fine of 10 million $AED, approximately 2.72 million USD.

At the same time, the four individuals mentioned above were fined 55,000 USD each for violating the "Virtual Market Advertising and Marketing Regulations."

The statement highlighted:

The fine against OPNX was issued on May 2 and remains unpaid as of today; however, the fines for the four individuals have been fully paid.

It was also added that, "VARA will take further enforcement actions, including escalating penalties, to expedite the resolution of unpaid fines."

Previous Warnings Issued to OPNX by Dubai Authorities

As mentioned earlier, the CEO of OPNX, two founders, and two founders of 3AC were formally warned by VARA officials in April this year for operating an unregulated exchange, prohibiting them from promoting their products and services to the local Dubai population. This was reported in an article by Coindesk.

In the statement at that time, VARA expressed:

We will continue to actively monitor and investigate the activities of OPNX to protect the market and assess any further restrictions that may be necessary.

3AC Founders on the Run Again

In July last year, Kyle Davies and Su Zhu became subjects of pursuit in the United Kingdom and the United States for evading participation in the liquidation and litigation processes after the bankruptcy of 3AC. Last month, they claimed that they would earn profits through their newly established OPNX exchange to repay debts.

Recently, Davies even explained through his lawyers that he renounced his U.S. citizenship as early as 2017 and became a citizen of Singapore, thereby not subject to the jurisdiction of U.S. courts and not obligated to respond to demands from relevant authorities, causing outrage among creditors.

Recap: 3AC founder Kyle Davies claims to have renounced U.S. citizenship and is not under U.S. court jurisdiction.