Three Arrows Capital, a Singapore-based crypto hedge fund, has received an official reprimand from the Monetary Authority of Singapore (MAS) for providing false information and exceeding the assets under management (AUM) threshold for a registered fund management company.
Three Arrows Capital co-founder Su Zhu / Photo credit: Three Arrows Capital
The investigation, which MAS began in June 2021, found that Three Arrows had failed to notify the central bank about changes in directorships and shareholdings of co-founders Su Zhu and Kyle Davies. It also revealed that the crypto hedge fund had exceeded the AUM limit between July 2020 and September 2020 as well as between November 2020 and August 2021.
When the firm obtained registered fund management company status in 2013, it was allowed to manage assets of no more than S$250 million (US$179.6 million).
However, the financial regulator found that Three Arrows Capital’s disclosure about transferring the management of its fund to an unrelated entity in the British Virgin Islands was misleading as the company did not reveal that Zhu was a common shareholder in both firms.
Currently, MAS is assessing if the crypto firm has breached additional regulations after the company was issued a court order to enter liquidation and a default notice from crypto broker Voyager. Three Arrows could also be in danger of insolvency after going through major liquidations.
Currency converted from SG dollar to US dollar: US$1 = S$ 1.39
See also: First Luna, now Celsius. What’s behind the latest crypto crisis?
Editing by Deepti Sri and Joy Tirkey
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