Crypto News – The co-founders of the collapsed hedge fund Three Arrows Capital, Zhu Su, and Kyle Davies, have been prohibited from participating in regulated business operations in Singapore by the Monetary Authority of Singapore as of this morning.
Three Arrows Capital Co-Founders Zhu Su and Kyle Davies Subjected to Restrictions by MAS
Su and Davies were given 9-year restriction orders by MAS for violating the Securities and Futures Act of 2001 and the Securities and Futures (Licensing and Conduct of Business) Regulations (SFR), according to a statement from MAS.
Under the POs, which took effect from 13 September 2023, Mr Zhu and Mr Davies will be prohibited from performing any regulated activity and from taking part in the management of, acting as a director of or becoming a substantial shareholder, of any capital market services firm under the SFA,
the watchdog
Three Arrows Gave Misleading Information to MAS Last Year
In the months following the collapse of the Terra ecosystem last year, Three Arrows, previously one of the biggest hedge funds in the cryptocurrency market, got into difficulties and filed for bankruptcy in July 2022. According to documents made public at the time, it owed its principal creditors more than $3.5 billion.
Three Arrows had already received criticism from MAS in June 2022 for providing the regulator with misleading information. According to the statement released today by MAS, ongoing examinations into the company and its founders revealed other violations of its laws between August 2020 and January 2022.
Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors. MAS takes a serious view of Mr Zhu’s and Mr Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties. MAS will take action to weed out senior managers who commit such misconduct.
Ms Loo Siew Yee, an assistant managing director at MAS
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