Key Takeaways
- The Financial Authority of Singapore has reprimanded the troubled crypto hedge fund Three Arrows Capital.
- The MAS has alleged that Three Arrows Capital misled the company over its possession, administration, and belongings below administration.
- The scrutiny from the MAS comes as Three Arrows Capital grapples with insolvency.
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The Financial Authority of Singapore has reprimanded Three Arrows Capital for offering false possession data and exceeding the nation’s permitted belongings below administration threshold.
MAS Reprimands Three Arrows Capital
Three Arrows Capital is in sizzling water with authorities in Singapore.
The Singapore-based hedge fund, co-founded in 2012 by classmates Su Zhu and Kyle Davies, has been reprimanded by the Financial Authority of Singapore (MAS) for offering false and deceptive data.
A Thursday media release from the MAS has accused Three Arrows Capital of intentionally deceptive the company over its administration and possession. In accordance with the discharge, the fund transferred administration to an unrelated offshore entity on Sep. 1, 2021. Nevertheless, this new entity was additionally partly owned by Three Arrows’ Zhu, a proven fact that the fund didn’t open up to Singapore authorities.
Moreover, the MAS has acknowledged that Three Arrows failed to tell the company of adjustments within the directorships and shareholdings of Zhu and Davies in a well timed vogue. The discharge additionally states that the fund breached the permitted belongings below administration threshold of round $179 million for registered fund administration corporations on two separate events. At its peak, Three Arrows is estimated to have held belongings valued at upwards of $10 billion.
The scrutiny from the MAS comes as Three Arrows grapples with an insolvency disaster. On Wednesday, the fund was ordered by a British Virgin Islands courtroom to liquidate its belongings with the intention to pay again its collectors. Whereas the complete extent of Three Arrows’ debt remains to be unknown, crypto alternate Voyager Digital just lately revealed that the fund had defaulted on a $665 million debt consisting of 15,250 Bitcoin and $350 million value of the USDC stablecoin.
Whereas the MAS has presently solely reprimanded the agency for minor violations, the media launch leaves the door open to additional motion. “In mild of current developments which name into query the solvency of the fund managed by [Three Arrows Capital], MAS is assessing if there have been additional breaches of MAS’ laws,” the company stated.
Disclosure: On the time of penning this piece, the creator owned ETH and a number of other different cryptocurrencies.
