OPNX hit with reprimand from Dubai regulator

Quick Take

  • The regulator said that Kyle Davies and Su Zhu’s new trading platform OPNX is operating without the necessary licenses.
  • Zhu told Bloomberg he and Davies are not involved in day-to-day operations. 

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


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

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. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].


To contact the editor of this story:
Andrew Rummer at
[email protected]