Opyn Co-founder Zubin Koticha Resigns Amid CFTC’s Regulatory Charges

Coingapestaff
November 14, 2023
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CFTC Acting Chair To Launch Public Roundtable On Crypto

Zubin Koticha, the co-founder of Opyn, a decentralized finance (DeFi) option protocol firm, has announced to step down as the Chief Executive Officer (CEO) amid regulatory action. On November 14, Koticha took to X, formerly Twitter, and informed the crypto community about his decision.

In the X post, Zubin addressed the crypto community and informed them about his tough decision. He cited the recent regulatory action against Opyn as be reason behind the resignation. Furthermore, Zubin also informed that not only he, but Alexis Gauba also took the decision and submitted her resignation, leaving Opyn. Zubin concluded his post by saying, “This is honestly really emotional for me and Alexis”.

CFTC’s Charges Against Opyn

It is to be noted, that Opyn is facing legal challenges by the Commodity Futures Trading Commission (CFTC). According to reports, allegations against Opyn include registration failures and unauthorized commodity transactions. The allegations levied after an investigation also include inadequate customer identification procedures, and unauthorized leveraged and margined retail commodity transactions involving digital assets. Moreover, the CFTC imposed a penalty of $250,000, for settlement and directed the firm to comply with existing regulations.

The aforementioned charges against Opyn were filed by the CFTC in September, with the consequences of legal penalties. However, the firm agreed on a settlement of $250,000. Opyn also assured to seize all the irregularities and functioning and comply with the guidelines of CFTC under the Commodity Exchange Act.

Also Read: SOL Poses Remarkable Performance Despite FTX Asset Liquidation

Andrew Leone to Lead Opyn as New CEO

After the resignation of Zubin Koticha and Alexis Gauba, Andrew Leone, previously the head of research at Opyn, will take over as the new CEO of the firm. Speaking about Andrew Leone, he holds expertise in volatility trading, particularly with the VIX, which is what makes him the right candidate for the role. The switch in leadership at a time when Opyn is facing legal challenges, and can impact the DeFi industry for the crypto community.

Meanwhile, the announcement has impacted Opyn’s Squeeth token price, which is currently trading at $116.59, with a massive fall of 0.71%. In addition, the market value cap is $14,361.21 with a downward trend of 62.36%, during the time of writing.

Also Read: Bitcoin Drops Below $36,500 As Investors Await October CPI Data

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.