3AC Founders Face Scrutiny After Dubai Regulator Imposes Fine

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3AC Founders Face Scrutiny
  • Dubai regulators fined OPNX founders after failure to clear pending penalties.
  • Mark Lamb, Leslie Lamb, Su Zhu, and Kyle Davies were charged $54,451.
  • According to VARA, OPNX doesn’t have the necessary licenses to operate in Dubai.

Bankrupt crypto hedge fund Three Arrows Capital (3AC) founders have once again made headlines with another scandal. According to Bloomberg, Su Zhu and Kyle Davies have been fined by the Dubai authorities for their new venture, OPNX.

Virtual Assets Regulatory Authority has levied charges after the 3AC co-founders, alongside OPNX co-founder Mark Lamb and Chief Executive Officer Leslie Lamb failed to pay the penalties of 200,000 dirhams ($54,451), pending since May. The regulators also said:

“VARA shall determine consequential actions warranted against OPNX, which may include further fines, penalties, and/or taking any actions necessary to recover payment and definitively remedy the behavior.”

Earlier in May, OPNX founders received a written reprimand from Dubai authorities for running a digital-asset exchange in the absence of a necessary local license. VARA also noted that it will monitor OPNX’s activities in the future. Additionally, Lamb argued that the firm was cooperating with VARA’s investigation. However, she mentioned that OPNX didn’t market itself across Dubai or UAE.

Recently, Dubai has been strict when it comes to crypto, aligning itself with UAE’s goal to exit the Financial Action Task Force’s “gray list” of jurisdictions that indirectly support illicit funds. Moreover, Dubai has made it compulsory for crypto companies that service retail investors to receive a license from VARA to begin.

Bloomberg adds that VARA has taken its biggest action since its establishment by fining OPNX. The regulators first noticed that OPNX is collecting customers’ private data, back in February. Nevertheless, no step was taken till May.

Despite stringent regulatory frameworks, crypto experts are relocating their businesses to Dubai. Last month, crypto influencer Ben Armstrong announced plans to leave America and shift to Dubai.