Dubai authority slaps $2.7 million fine on OPNX

Dubai’s Virtual Asset Regulatory Authority (VAR) slapped a $2.7-million fine on cryptocurrency project OPNX, that’s the brainchild of the now-defunct digital asset hedge fund company Three Arrows Capital (3AC). The action comes months after VARA had earlier rapped the company in May. Though OPNX’s founders and CEO have settled their fines, the authority has said that the crypto project’s non-payment of levies has it “concerned”. The authority is also believed to be contemplating extra measures against OPNX. 

Issuing a notice on August 16, 2023, VARA stated that OPNX has not yet paid a fine of $2.72 million that was levied against it in May for alleged market offenses. In addition, the authority has imposed heavy penalties of $54, 450 on the OPNX CEO Leslie Lamb, its co-founder Mark Lamb and 3AC founders Kylie Davies and Su Zhu. The fines were levied in connection with the alleged violation of regulations related to promotion, marketing, and advertising. However. all four have settled their fines.

At the time of its launch in April 2023, OPNX had stirred controversy due to its link with Davies and Zhu – the two were at the helm of the 3AC when it collapsed, resulting in substantial investor losses. However, OPNX managed to move past the skepticism to clock a daily average volume of $102 million and string seven-day and 24-hour trade volumes. 

Before the fines were levied, VARA had reprimanded the four top bosses of OPNX over their unregulated activities in Dubai and alleged unauthorized promotion of the crypto project.

If OPNX continues to stay delinquent in paying these fines, the authority may go ahead to take additional measures like higher fines. Analysts have claimed that they are keenly watching the development’s impact on live cryptocurrency prices and the Top 10 cryptocurrencies.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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