The co-founders of Opyn stepped down as their defi options protocol faced charges from the Commodity Futures Trading Commission (CFTC) in September. 
CEO Zubin Koticha revealed today in an X post that he and co-founder Alexis Gauba have chosen to exit crypto, attributing their decision to the recent regulatory actions faced by Opyn. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Hey Crypto Twitter, It's been a while This one's a tough one… After the regulatory action against Opyn, <a href="https://twitter.com/AlexisGauba?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@alexisgauba</a> and I have made the decision that we are leaving crypto. This is honestly really emotional for me and Alexis.— zubin koticha (@snarkyzk) <a href="https://twitter.com/snarkyzk/status/1724243580737499401?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">November 14, 2023</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
Opyn is a defi investment strategy platform with $20 million in total volume locked (<a href="https://crypto.news/learn/why-tvl-matters-in-defi-total-value-locked-explained/" data-type="link" data-id="https://crypto.news/learn/why-tvl-matters-in-defi-total-value-locked-explained/">TVL</a>) on its protocol. 
In September, the <a href="https://crypto.news/cftc-filed-complaints-against-three-defi-protocols/">CFTC brought charges against Opyn</a> and two other defi entities, citing several violations. These included registration failures, the absence of a customer identification program, and the unlawful offering of leveraged and margined retail commodity transactions in digital assets. As a result, Opyn was fined $250,000 and ordered to cease any actions breaching the Commodity Exchange Act and CFTC regulations. 
 You might also like: <a href="https://crypto.news/cftc-filed-complaints-against-three-defi-protocols/"> CFTC filed complaints against three defi protocols </a> 
Koticha reflected on their work at Opyn, highlighting their innovative approaches in structured products and derivatives, a feat they believed was unachievable in traditional finance (tradfi). 
<blockquote class="wp-block-quote"> 
 “We thought we were going to be in crypto for the rest of our lives. But, unfortunately and unexpectedly, this is the end of the road.” <cite>Zubin Koticha, CEO of Opyn</cite>
</blockquote> 
He also announced that Andrew Leone, who currently leads research at Opyn, will be stepping into the CEO role. Leone previously spent six years as a vice president at <a href="https://crypto.news/nomura-launches-bitcoin-adoption-fund-for-institutional-investors/" data-type="link" data-id="https://crypto.news/nomura-launches-bitcoin-adoption-fund-for-institutional-investors/">Nomura</a>, the Japanese bank, where he headed up VIX and structured volatility trading, according to his LinkedIn profile. 
<h2 class="wp-block-heading" id="cftc-s-recent-crypto-cases">CFTC’s recent crypto cases</h2> 
The CFTC, established in 1974, is a key regulatory body in the US, overseeing derivative markets, including futures, swaps, and cryptocurrencies. In 2023 alone, the <a href="https://crypto.news/cftc-expands-digital-assets-cases-to-50-in-2023/">Commission filed 96 cases</a>, nearly half of them involving digital assets. High-profile lawsuits included actions against major exchanges such as <a href="https://crypto.news/tag/ftx/" data-type="link" data-id="https://crypto.news/tag/ftx/">FTX</a>, Binance, Celsius, and their founders. 
The Commission also reported a record <a href="https://crypto.news/cftc-paid-almost-16m-to-crypto-whistleblowers-in-2023/">$16 million in whistleblower payouts</a> in 2023, based on 1,530 successful referrals, predominantly in the crypto sector. These efforts are part of the CFTC’s broader mission to safeguard consumers from fraudulent activities in the crypto market. 
The regulator has previously taken action against different crypto scammers that conducted crypto frauds, such as <a href="https://crypto.news/cftc-charges-individuals-with-crypto-fraud/">Rene Larralde and Juan Pablo Valcarce</a>, for involvement in a fraudulent crypto and precious metals trading scheme, <a href="https://crypto.news/cftc-sues-tennessee-real-estate-couple-over-alleged-blessings-of-god-thru-crypto-fraud/">Michael and Amanda Griffis</a>, who worked a crypto scheme related to their real estate business, and also <a href="https://crypto.news/cftc-orders-two-florida-men-to-pay-5-4m-in-bitcoin-fraud-settlement/">Levine and Reichenthal</a> who engaged into a digital asset fraud, among others. 
 Read more: <a href="https://crypto.news/cftc-files-legal-action-against-voyager-digital-and-its-ex-ceo/"> CFTC files legal action against Voyager Digital and its ex-CEO </a>

Opyn co-founders exit following CFTC charges

Table of Contents

crypto.news

Other articles published on Nov 14, 2023

Is the BlackRock-XRP Trust Filing Genuine or a Fabrication?

Uniswap Labs launches Android mobile wallet

Analyst focus on Rebel Satoshi, NEO, and Chainlink in November

Snap Gains in Premarket After Deal with Amazon for In-App Shopping

Lookonchain reports whales are dominating the Ethereum market with big sales

Shiba Inu Holders Warned as Exciting SHIB Developments Unfold

Join our free newsletter for daily crypto updates!