The Virtual Asset Regulatory Authority (VARA) of Dubai has imposed a hefty fine of $2.7 million on the cryptocurrency project OPNX, helmed by the creators of the now-defunct digital asset hedge fund Three Arrows Capital (3AC).
This stern action follows a previous reprimand issued by VARA in May. While the project’s founders and CEO have settled their fines, VARA has expressed concern over OPNX’s non-payment and is contemplating additional measures against the platform.
In a recent enforcement notice dated August 16, 2023, VARA disclosed that OPNX has yet to fulfill a fine of 10 million AED ($2.72 million) levied against it on May 2 for a market offense.
Additionally, VARA imposed penalty fines of 200,000 AED ($54,450) on OPNX CEO Leslie Lamb, 3AC founders Su Zhu and Kylie Davies, and OPNX co-founder Mark Lamb.
These fines were imposed for violations related to marketing, advertising, and promotion regulations. Notably, all four individuals have successfully settled their fines.
The introduction of OPNX in April 2023 sparked controversy within the crypto community due to its association with Zhu and Davies, the figures behind a previous cryptocurrency project that experienced a collapse, leading to substantial investor losses.
Despite the initial skepticism, OPNX has achieved an average daily volume of $102 million, with robust 24-hour and seven-day trade volumes.
Prior to the fines, VARA had reprimanded Zhu, Davies, Mark Lamb, Leslie Lamb, and Sudhu Arumugan for their unregulated activities within Dubai and the unauthorized promotion of OPNX to residents.
As OPNX remains delinquent in paying its fine, VARA is considering taking further decisive measures, which could include additional fines, penalties, or even legal actions to recover the payment and rectify the situation.
