Dubai's Crypto Regulator Issues Fine to Founders of Collapsed Hedge Fund over OPNX Exchange

Overview

The founders of the collapsed digital asset hedge fund Three Arrows Capital (3AC) are facing a fine from Dubai's Virtual Asset Regulatory Authority (VARA) over the OPNX exchange. The regulator has issued a fine of 10 million AED ($2.7 million) to the exchange for violations of market regulations. Additionally, fines of 200,000 AED ($54,000) were issued to OPNX executives, including the 3AC founders, for violations of marketing, advertising, and promotions laws. While the individuals mentioned have paid their fines, the 2.7 million AED fine remains unpaid.

Unpaid Fine and Consequential Actions

VARA has stated that it will determine further actions against OPNX due to the unpaid fine. These actions may include additional penalties, more fines, or actions to recover the payment. VARA has the option to refer the matter to law enforcement agencies or competent courts.

Rise and Fall of OPNX

OPNX was founded earlier this year by the co-founders of 3AC and CoinFLEX founder Mark Lamb. The exchange initially had a trading volume of only $13.64 on its first day, but by late June, the daily trading volume had surged to $30 million.

Dubai's Strict Stance on Crypto Violations

This incident is part of Dubai regulator's firm approach towards crypto violations. Earlier this year, VARA suspended the license of BitOasis, the first exchange to receive an operating license in Dubai, for failing to meet mandated conditions within a specified deadline.