Crypto News

3AC founders run into fresh trouble in Dubai over new exchange OPNX

3AC founders run into fresh trouble in Dubai over new exchange OPNX
© Copyright Image: Crypto Breaking News

The co-founders of failed crypto hedge fund Three Arrows Capital (3AC) — Su Zhu and Kyle Davies — have run into fresh trouble over operating and promoting their new digital-asset platform, Open Exchange or OPNX, without the required local license in Dubai.

According to a report published in Bloomberg, Dubai’s Virtual Assets Regulatory Authority (VARA) sent a written notice to Zhu and Davies along with two other OPNX executives. In a statement to Bloomberg, VARA said it is still investigating the exchange’s activities and reportedly assured corrective measures would be taken against the firm for violating laws.

The regulator reportedly claimed that OPNX has been engaged in marketing the exchange in the country through social media platforms without establishing warranted restrictions for residents of Dubai/UAE. VARA first discovered the exchange in February through its marketing advertisements to lure customers even before the launch of the exchange.

The latest written reprimand from VARA comes after two cease-and-desist notices from the authorities in February and March. VARA said that despite the notices, they didn’t hear back from OPNX and issued an “investor and marketplace alert” against the exchange just days after its launch on April 4.

OPNX’s launch and its association with the former founders of the failed crypto hedge fund have always been a talking point in the crypto industry. The crypto community was baffled to see Zhu and Davies promoting a new venture and raising funds for the same, even though they are currently under investigation for the downfall of 3AC.

Zhu and Davies have reportedly backed away from any further association with OPNX and reportedly told Bloomberg that “while Kyle and I helped contribute the initial ideas for OPNX, Leslie is very much the CEO and we aren’t involved in the day-to-day.”

Related: OPNX quips about its early dismal volume after reporting 90,000% surge

OPNX association with former 3AC founders has not helped its cause when it comes to fundraising. On April 24, OPNX chief Leslie Lamb blasted a number of venture capital firms on Twitter after some reportedly backed out of the venture. The exchange has earlier claimed that it was backed by the likes of AppWorks, Susquehanna (SIG), DRW, MIAX Group, China Merchant Bank International, and Token Bay Capital.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

Source: Cointelegraph.com

The post 3AC founders run into fresh trouble in Dubai over new exchange OPNX appeared first on Crypto Breaking News.

Read more: https://www.cryptobreaking.com/3ac-founders-run-into-fresh-trouble-in-dubai-over-new-exchange-opnx/

Text source: Crypto Breaking News

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories