The crypto bankruptcy claims exchange OPNX, spearheaded by the founders of the now-defunct hedge fund Three Arrows Capital (3AC), Kyle Davies and Su Zhu, is facing a hefty fine nearing $2.8 million. The fine has been imposed by the Virtual Assets Regulatory Authority (VARA) of Dubai as per a recent notice. It’s a second-time admonition for OPNX by VARA, the first one being in May.
This kerfuffle was kindled by Davies and Zhu launching this project in the aftermath of 3AC’s downslide. The venture’s purpose was enabling investors to swap bankruptcy claims for firms like FTX and CoinFLEX. Yet, despite these ambitious plans, the performance of the company has been more than just lackluster.
In its inaugural 24 hours, it managed to make below $2, a less than stellar start by any measure. Apparently, claims of prominent trading firms being major investors in this venture proved unfounded as OPNX vigorously refuted such claims.
The hefty penalty of 10,000,000 United Arab Emirates Dirhams (equivalent to $2.7 million) was given for a Market Offense, under rules established earlier this year by VARA. As per the regulator, this penalty imposed on May 2, continues to remain unsettled at the time this notice was published.
Concurrently, fines close to $54,000 were also drawn against the founders Davies, Zhu, as well as Mark Lamb and OPNX CEO Leslie Lamb. These sanctions were for not satisfying marketing and advertising standards set by the watchdog. Interestingly enough, these penalties have been fully settled by the involved parties, as stated in the notice.
However, it seems VARA is not done just yet. It maintains that it will implement further sanctions, which may include more penalties, to tackle the issue of these unpaid fines.
By and large, it is apparent that if digital assets and blockchain technology are to gain widespread acceptance and trust, regulatory compliance cannot be something that’s considered optional or flexible. It will be enlightening to see how this scenario ensues, as it can set important precedents for future crypto ventures.
Source: Coindesk
