Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a $2.7 million fine against the co-founders of the now now-defunct crypto hedge fund Three Arrows Capital (3AC). The fine is a result of their involvement in the new digital asset exchange, OPNX.
VARA revealed that a fine of Dh10 million ($2.7 million) was issued to OPNX in May, which remains unpaid. The Dubai regulator mentioned that individual fines of Dh200,000 ($54,451) each were paid by Su Zhu, Kyle Davies, and OPNX’s two other co-founders for violations related to marketing, advertising, and promotions.
Considering the outstanding fine, VARA stated, “VARA shall determine appropriate follow-up actions against OPNX, which may involve additional fines, penalties, and necessary measures to recover the payment and rectify the situation.”
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Su Zhu and Kyle Davies collaborated with Mark Lamb and Sudhu Arumugam to establish OPNX, positioning it as a platform for trading crypto assets. Since the collapse of their previous fund, Three Arrows, the founders have centered their operations in Dubai.
In February, VARA became aware that OPNX was soliciting customers and gathering personal data for its platform. Mark Lamb, Sudhu Arumugam, and OPNX’s CEO, Leslie Lamb, have also received reprimands from the regulatory authority.
According to reports, Leslie Lamb stated in May that the company had not specifically targeted Dubai or the broader UAE in its marketing efforts. She asserted that OPNX was fully cooperating with VARA’s investigation and believed it had not violated any regulations.
During that period, Zhu stated that although he and Davies contributed initial ideas to OPNX, Lamb held the position of CEO, and they were not actively involved in day-to-day operations. Both Zhu and Davies have continued to promote OPNX on X, previously known as Twitter.
