Singapore regulator reprimanded Three Arrows Capital for providing false information

The cryptocurrency hedge fund is also accused of exceeding the maximum allowed amount of assets under management

30.06.2022 - 15:20

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What’s new? The Monetary Authority of Singapore (MAS) has reprimanded cryptocurrency hedge fund Three Arrows Capital (3AC) for providing false information and exceeding the maximum allowed amount of assets under management (AUM). MAS explained that the fund exceeded the AUM threshold of S$250 million (about $180 million) twice, from July to September in 2020 and from November to August in 2020-2021. The company also failed to properly notify MAS of changes in management and equity.

MAS's Press Release

More on the charges. On September 1, 2021, 3AC transferred management to an offshore company in the Virgin Islands, while resuming management of some of the fund's assets in February 2022. On April 29, 3AC notified the regulator of its intention to cease management activities in Singapore as of May 6 this year. MAS considers the allegation that the offshore entity handed over management is false because it and the hedge fund have a common shareholder, Su Zhu, who is also the co-founder and head of Three Arrows.

Regulator officials said they would investigate 3AC further because of the “recent developments which call into question the solvency of the fund.”

On June 29, a Virgin Islands court ordered the liquidation of Three Arrows Capital fund after a review of its insolvency case.

You can read experts' opinions on the consequences of closing 3AC's positions in the GetBlock Magazine's editorial.

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