Singapore authorities reprimand Three Arrows Capital for providing false information

Quick Take

  • Singapore’s regulatory authority has reprimanded troubled crypto hedge fund Three Arrows Capital for providing false information.
  • It also said that the hedge fund exceeded its allowed threshold for assets under management.

The Monetary Authority of Singapore (MAS) today reprimanded embattled crypto hedge fund Three Arrows Capital, known as 3AC, for providing false information and exceeding the assets under management threshold permitted by the regulatory authority. 

In 2013, the authority granted the hedge fund registered status under the conditions that its assets did not exceed S$250 million. 

However, according to a release, the authority says the company breached its AUM threshold between July 2020 and September 2020 and between November 2020 and August 2021. It also reprimanded 3AC for its failure to notify changes to directorships and shareholdings and also failing to notify MAS regarding the common shareholder of 3AC's offshore entity, Su Zhu. Zhu is also the director of 3AC. 

MAS added that, since there is speculation that the hedge fund may no longer be solvent, it is assessing whether there were any further breaches of its regulations.

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This comes just days after a court order in the British Virgin Islands (BVI) placed 3AC into liquidation. The court appointed financial advisory firm Teneo to handle the liquidation. As a liquidation handler, Teneo’s main job is to protect the assets of 3AC and understand who its creditors are.

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