The co-founders of Open Exchange (OPNX), Su Zhu and Kyle Davies, have received a written notice from Dubai’s Virtual Assets Regulatory Authority (VARA) for operating and promoting their digital asset platform without a local license. VARA claimed that OPNX marketed the exchange through social media platforms without proper restrictions for Dubai and the United Arab Emirates residents, which violated the law.
The regulator had previously sent two cease-and-desist notices in February and March and later issued an “investor and marketplace alert” a few days after OPNX’s launch on April 4. Zhu and Davies, who were the former founders of Three Arrows Capital, have distanced themselves from OPNX. This regulatory action comes amidst increased scrutiny over the founders’ role in the failed hedge fund.
