Three Arrows Capital Provided False Information and Exceeded AUM Threshold, MAS States

The Mon­e­tary Author­i­ty of Sin­ga­pore (MAS) said it had rep­ri­mand­ed Three Arrows Cap­i­tal on June 30.

• The cen­tral bank alleged that the belea­guered cryp­to hedge fund pro­vid­ed mis­lead­ing infor­ma­tion and also sur­passed the assets under the man­age­ment (AUM) thresh­old per­mit­ted for a reg­is­tered fund man­age­ment com­pa­ny (RFMC).
• The announce­ment stated,

“TAC had rep­re­sent­ed to MAS that it had novat­ed the man­age­ment of its fund to an unre­lat­ed off­shore enti­ty with effect from 1 Sep­tem­ber 2021. How­ev­er, this rep­re­sen­ta­tion was mis­lead­ing as TAC and the off­shore enti­ty shared a com­mon share­hold­er, Mr. Su Zhu, who is also a direc­tor of TAC. (Sec­tion 329(1) of the SFA).”

• Fur­ther­more, 3AC also did not noti­fy the reg­u­la­tor regard­ing changes in the direc­tor­ships and share­hold­ings of its direc­tors with­in the required time­line, the MAS said.
• The orga­ni­za­tion revealed that it will now inves­ti­gate if 3AC was involved in any fur­ther breach­es of its regulations.
• Once a high-pro­file cryp­to enti­ty and a dar­ling of last year’s bull mar­ket, 3AC has run into dif­fi­cul­ties fol­low­ing the sharp sell-off in the mar­ket in the past months.
• It had been sig­nif­i­cant­ly invest­ed in a num­ber of trou­bled projects, includ­ing Terra.
• Cryp­to bro­ker Voy­ager Dig­i­tal issued a default notice after 3AC failed to make pay­ments on a loan of 15,250 BTC and $350 mil­lion worth of USDC.
• The lat­est devel­op­ment comes after a British Vir­gin Islands court ordered the Sin­ga­pore-based cryp­to hedge fund into liquidation.