Tuesday 2 May 2023

3AC Founders Zhu, Davies Reprimanded by #Dubai Over OPNX Crypto Exchange - Bloomberg

3AC Founders Zhu, Davies Reprimanded by Dubai Over OPNX Crypto Exchange - Bloomberg

Dubai authorities reprimanded the co-founders of failed crypto hedge fund Three Arrows Capital for operating and promoting their new digital-asset exchange OPNX without the required local license.

Dubai’s Virtual Assets Regulatory Authority issued a written reprimand to Su Zhu and Kyle Davies, as well as OPNX’s two other co-founders and its chief executive, on April 18, according to a statement from the regulator. VARA said it will keep investigating OPNX’s activity “to assess further corrective measures that may be required.”

The action against OPNX is the latest sign of Dubai regulators taking a stricter approach toward crypto, even as the emirate attempts to position itself as a hub for the industry. That push coincides with broader efforts by the United Arab Emirates to get off the Financial Action Task Force’s “gray list” of jurisdictions that don’t do enough to uncover illicit funds, Bloomberg News reported in April.

Zhu and Davies started OPNX together with Mark Lamb and Sudhu Arumugam this year, marketing it as an exchange focused on trading crypto claims. The Three Arrows founders, who’ve spent months sparring with liquidators trying to recover money for creditors of their fallen fund, have made Dubai one of their main bases since its implosion last summer. They were previously based in Singapore.

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