Singapore Has Banned The Founders Of Three Arrows Capital From Trading For 9 Years – NewsTo
Singapore Has Banned The Founders Of Three Arrows Capital From Trading For 9 Years

Singapore Has Banned The Founders Of Three Arrows Capital From Trading For 9 Years

Singapore’s central bank bans Three Arrows founders for 9 years.

The founders of Three Arrows Capital, Kyle Davies and Zhu Su, are banned from conducting regulated activities or serving as senior executives at any Singaporean financial institution.

Singapore’s central bank has barred Kyle Davies and Su Zhu for nine years for alleged securities law violations at their crypto hedge fund, Three Arrows Capital. In a statement released on September 14, the Monetary Authority of Singapore (MAS) stated that Zhu and Davies were banned from engaging in regulated activities starting from September 13.

They will also be barred from managing, acting as a director, or being a major shareholder of any capital market services business in Singapore. In its decision to bar the pair, MAS stated that it discovered more securities law violations after conducting additional investigations into the bankrupt 3AC and its co-founders.

Su and Davies were accused by MAS of failing to notify the central bank that 3AC had hired a new business representative, providing incorrect information to the regulator, and failing to have an acceptable risk management framework in place.

Also Read: Singapore’s New Crypto Regulations Aiming At Custody, Lending, And Staking

Singapore Has Banned The Founders Of Three Arrows From Trading For 9 years

Loo Siew Yee, MAS’ assistant managing director for policy, payments and financial crime, stated, “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,” she further stated.

A day before 3AC filed for bankruptcy last June, MAS chastised the hedge fund for not telling it about Zhu and Davies’ directorship changes and exceeding the lawful assets under management level.

In the cryptocurrency market crisis that was brought on by the collapse of the Terra ecosystem last year, 3AC was totally destroyed, and its leveraged crypto positions exposed it to billions in loan defaults.

Creditors assert that 3AC owes up to $3.5 billion, and liquidators have been trying to recover about $1.3 billion from Zhu and Davies, who are accused of accruing the debt after the company was already bankrupt.

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