The Singapore Regulatory Authority namely, Monetary Authority of Singapore (MAS) on Thursday has reprimanded Three Arrow Capital (3AC) for providing false information and exceeding assets under management threshold, in a press release.
The reprimand relates to transgressions committed by 3AC before notifying MAS in April 2022. The MAS has been looking into these violations since June 2021.
In August 2013, 3AC received its Registered Fund Management Company (RFMC) status. This allowed them to manage assets of not more than $250 million.
3AC had exceeded its allowable assets under management for RFMC between July 2020 and September 2020 and between November 2020 and August 2021.
In 2021, 3AC informed MAS about replacing their management funding from Singapore to another unrelated entity in British Virgin Islands. The MAS stated that they were misled by 3AC, as the firm and the offshore entity shared a common shareholder, Mr. Su Zhu, the director of 3AC.
A portion of the funds assets were still managed in Singapore till February 2022. It informed MAS about their intentions to cease operations in Singapore from June 2022.
3AC also failed to inform them about changes in the directorships and shareholdings of directors, Mr Su Zhu and Mr Kyle Livingstone Davies.
After, the British Virgin Islands courts order to liquidate the crypto hedge fund, there are new revelations about the firm and its mismanagement of funds. MAS is still assessing if there are any further breaches by 3AC of the regulations.
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Source: https://coinpedia.org/news/three-arrow-capital-3ac-lands-into-trouble-with-singapore-regulatory-authority/