OPNX hit with reprimand from Dubai regulator

Dubai's digital assets regulator issued a formal reprimand to the co-founders of bankrupt crypto investment firm Three Arrows Capital, according to a statement. 

The Middle Eastern country's so-called Virtual Assets Regulatory Authority said Kyle Davies and Su Zhu's latest venture, OPNX, is operating without the requisite licenses, adding that it is investigating the firm "to access further corrective measures that may be required."

"VARA became aware of OPNX soliciting, and collecting personal data from the public to participate in its new (to be launched) exchange," the agency added. "Through social media platforms, OPNX had been engaged in marketing the exchange without establishing warranted restrictions for residents of Dubai/UAE."

Bloomberg earlier reported the news. 

OPNX's claims platform

Davies and Zhu — former classmates — launched OPNX last month out of crypto trading platform Coinflex, which was founded by Mark Lamb. The firm, which offers traders a platform to trade bankruptcy claims, is led by Lamb's wife Leslie Lamb, who told Bloomberg that the firm is operating above board. 

“At no point in time have UAE customers been able to open an account on OPNX,” Leslie Lamb said in a WhatsApp message to Bloomberg. 

Zhu told Bloomberg that he and Davies are not involved in day-to-day operations.