Dubai-based Virtual Assets Regulatory Authority (VARA) has issued a 10 million dirhams ($2.7 million) fine against digital assets exchange Open Technology Markets (OPNX) for failing to comply with the marketing, advertising, and promotions protocols.

VARA has also imposed an AED 200,000 fine each against the founders, Kyle Davies and Su Zhu of Three Arrows Capital, along with OPNX co-founder Mark Lamb and chief executive Leslie Lamb, which the regulator stated has been paid in full.

As the AED 10mln fine for the May 2 breach remains unpaid, the regulator said it could pursue further action. “… VARA shall determine consequential actions warranted against OPNX, which may include further fines, penalties, and/or taking any actions necessary to recover payment and definitively remedy the behaviour including, but not limited to, referring the matter to any law enforcement agency(ies) or competent courts,” it said.

Three Arrows Capital was a Singapore-based crypto hedge fund that collapsed in June 2022 following a failure to repay debts. The company filed for bankruptcy court following the crypto crash and a risky trading strategy that left it unable to repay lenders.

(Writing by Bindu Rai, editing by Seban Scaria)