False information allegations for 3AC

New trouble for hedge fund Three Arrows Capital (3AC), which has received charges from the Central Bank of Singapore for providing false information after it was put on notice by a court.

3AC receives charges for providing false information 

Following Monday’s announcement that it had sent a default notice from broker Voyager, and a default notice from a court in the Virgin Islands, there is no end to the bad news for crypto hedge fund 3AC..

JUST IN: ?? Singapore’s Central Bank reprimands Three Arrows Capital for providing false information and exceeding the AUM threshold

— Blockworks (@Blockworks_) June 30, 2022

According to some press rumors, the Central Bank of Singapore (MAS) has accused the hedge fund, Three Arrows Capital, of misleading it with false information. According to some sources, this accusation refers to the balance sheet situation of the Singapore-based fund, which is now reportedly on the verge of bankruptcy.

To be specific, the MAS allegedly claimed that the fund failed to disclose ownership information and exceeded the threshold set for assets under management. The fund created in 2013 allegedly exceeded the exposure ceiling established with authorities in the Asian city-state for long periods.

In addition, the firm reportedly disclosed last October that it had established its registered office in the Virgin Islands (this was allegedly the reason for the local court’s decision to declare the fund bankrupt). The hedge fund also allegedly failed to notify the regulator of the change that had taken place in the directorships and holding positions for its co-founders, Su and Kyle Davies, within the timeframe required by law.

The end of one of the most speculative crypto hedge funds ever

According to Sky news, the consulting firm Teneo has already been appointed to handle the fund’s insolvency and liquidation. The 3AC fund made headlines for its highly risky but often spot-on investments, thanks to a rather long period of bullish markets. In recent weeks it has been hit hard by the market decline and also by the collapse of the Terra ecosystem, to which the fund reportedly had a large financial exposure, which according to some rumors, could be as high as $200 million.

In the past weeks, several exchanges such as Bitmez, FTX, and Derybit have dumped the fund’s positions, due to the fund’s failure to cover margin requirements. All this has had a kind of snowball effect on the accounts of the company, whose adventure in the crypto space, seems indeed to have now reached the end credits.