Fresh Troubles for OPNX
It seems the co-founders of the now-defunct Three Arrows Capital (3AC), Su Zhu and Kyle Davies, are once again making headlines—but this time, it’s not for their crypto successes. The duo has found themselves in a bit of a pickle concerning their new venture, Open Exchange (OPNX), as they operate without the necessary licensing in Dubai. Can you believe it? It’s like a kid trying to build a sandcastle on the beach without any tools, and now the lifeguard’s warning them to ‘scram.’
VARA Steps In
According to a juicy report by Bloomberg, the Virtual Assets Regulatory Authority (VARA) of Dubai has sent a written notice to Zhu and Davies and two other executives at OPNX. In a statement that might as well be a parent giving their kid a talking-to, VARA said they’re investigating OPNX’s activities, signaling that corrective measures will be enforced due to violation of local laws.
Marketing Mayhem
Apparently, OPNX has been marketing its services via social media without the required permissions. It’s like they thought, “Who needs rules, anyway?” VARA noticed the exchange’s ads as early as February, well before OPNX even launched. Maybe they should’ve checked the local ‘Along with your great ideas, bring your licenses’ checklist before unleashing their marketing campaign.
Recurring Warnings
This latest slap on the wrist isn’t the first time OPNX has been called out for its antics. VARA fired off two cease-and-desist notices back in February and March. Despite these warnings resembling a massive neon sign screaming, ‘Stop! Or Else!’ OPNX reportedly remained tight-lipped until days after launching on April 4, when VARA issued an “investor and marketplace alert.” It seems the phrase “no news is good news” doesn’t apply here.
Unintended Drama
The crypto community is watching with raised eyebrows, with many puzzled by Zhu and Davies’ decision to promote their new venture while still facing scrutiny for the spectacular collapse of 3AC. They’ve taken a step back, stating through Bloomberg, “while Kyle and I helped contribute the initial ideas for OPNX, Leslie is very much the CEO and we aren’t involved in the day-to-day.” Oh, sure. Classic ‘not my circus, not my monkeys’ move.
Fundraising Fiasco
Despite dreams of a flourishing exchange, OPNX has found fundraising efforts to be a rocky road. On April 24, CEO Leslie Lamb took to Twitter, essentially throwing a tantrum after some venture capitalists pulled out. OPNX had originally boasted being backed by big names like AppWorks and Susquehanna International Group—so what gives? Did they really think people would trust a ship captained by the same folks who sank their last one?
Conclusion
The saga of Zhu, Davies, and OPNX serves as a cautionary tale for entrepreneurs in the digital asset space: just because you can start something doesn’t mean you should do it without understanding the local regulations. With regulators circling like vultures, it’s going to be a bumpy ride for OPNX as they navigate the intricacies of compliance while trying to figure out their identity, all without letting their past shadow their future.
