- Three Arrows Capital founders were reprimanded by Dubai for operating an unlicensed OPNX digital-asset exchange.
- The founders reportedly received a written notice from Dubai’s VARA on April 18.
- VARA reprimanded Lamb, Arumugam, and Leslie Lamb, while OPNX denied marketing to Dubai.
The co-founders of Three Arrows Capital, a crypto hedge fund that went belly up, received a reprimand from Dubai authorities for promoting and operating their new digital-asset exchange, OPNX, without obtaining the necessary local license.
According to a statement from Dubai’s Virtual Assets Regulatory Authority, Su Zhu and Kyle Davies, along with the other two co-founders and the CEO of OPNX, received a written reprimand on April 18 for operating the digital-asset exchange without the necessary local license. The regulatory authority also announced that it will continue to investigate OPNX’s activities and consider additional corrective measures as needed, reported Bloomberg.
Dubai’s regulatory authority reprimanded the co-founders of OPNX for operating without a local license, reflecting a trend of stricter scrutiny toward crypto despite Dubai’s efforts to become a crypto hub. The UAE aims to get off the “gray list” of jurisdictions that don’t do enough to uncover illicit funds.
Additionally, VARA, the regulatory body, reprimanded CoinFLEX founders Mark Lamb and Sudhu Arumugam, as well as OPNX CEO Leslie Lamb, according to reports. However, Leslie Lamb maintains that the company has not carried out any marketing aimed at Dubai or the wider UAE.
She further states that OPNX is cooperating with the regulatory investigation and believes that the company has not violated any regulations. Lamb shared in a WhatsApp message,
At no point in time have UAE customers been able to open an account on OPNX.
Meanwhile, in a separate message, Su Zhu stated that although he and Kyle Davies provided the initial ideas for OPNX, Leslie Lamb is the CEO and oversees the day-to-day operations.
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