Singapore Cracks Down on 3AC Founders for Crypto Violations
Singapore's Monetary Authority of Singapore (MAS) has issued 9-year prohibition orders against Zhu Su and Kyle Davies, founders of the defunct crypto hedge fund Three Arrows Capital (3AC).
This move stems from alleged securities law violations, preventing them from engaging in regulated business activities in Singapore.
In June 2022, MAS reprimanded 3AC for false information, undisclosed directorships, and exceeding asset management thresholds. Subsequently, the fund faced liquidation, owing $3.5 billion to creditors.
MAS conducted further investigations into 3AC, revealing additional securities law breaches between August 2020 and January 2022. These included delayed notifications of personnel appointments and misrepresented management activities.
The regulator also found that 3AC lacked proper risk management for digital assets and held Su and Davies accountable.
Loo Siew Yee, MAS’ Assistant Managing Director, emphasized the need for robust risk management and condemned Su and Davies’ disregard for regulatory requirements.
Furthermore, the founders faced legal issues with Dubai’s Virtual Assets Regulatory Authority (VARA), resulting in fines for them and their new exchange, OPNX.