Singapore bans founders of bankrupt crypto hedge fund 3AC for 9 years
Singapore has banned the founders of the bankrupt hedge fund 3AC, Zhu Su and Kyle Davies, for nine years from regulated business activities in the country.
- The crypto hedge fund went bankrupt in June 2022 in the wake of the Terra collapse.
- In February 2023, the 3AC founders defiantly launched a new crypto platform.
Singapore has banned the founders of the bankrupt hedge fund Three Arrows Capital (3AC) for nine years from engaging in regulated business activities in the country.
The Monetary Authority of Singapore (MAS), the country’s financial regulator, released a statement on 14 September that it has issued 9-year prohibition orders against Zhu Su and Kyle Davies. While the former was the chief executive officer (CEO) and director at 3AC, the latter was the chairman and director there.
The duo violated the Securities and Futures Act 2001 and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR). These violations compelled the Singaporean regulator to take the action, MAS claimed.
Effective 13 September, neither Su nor Davies can manage, act as a director, or be a substantial stakeholder of any capital market services business in Singapore for the next nine years.
The regulator stated it discovered more securities law violations during August 2020- January 2022 while conducting additional investigations into the 3AC crypto fund.
The duo failed to notify the central bank of 3AC hiring a new business representative. They provided the regulator with false information. In fact, they did not have an effective risk management structure in place.
Loo Siew Yee, MAS’ assistant managing director of policy, payments and financial crime, said,
MAS takes a serious view of Mr Zhu’s and Mr Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties.
What the team behind 3AC is up to these days…
In June 2022, the 3AC crypto hedge fund filed for bankruptcy following the Terra collapse.
The same month, the MAS reprimanded 3AC for providing false information to the public and the role Zhu and Davies played in its Singapore and British Virgin Island entities.
In February 2023, Zhu and Davies defiantly launched a new crypto platform, Open Exchange (OPNX), in Seychelles.
Last month, AMBCrypto reported that Dubai’s crypto regulator Virtual Assets Regulatory Authority (VARA) fined OPNX $2.7 million. The regulator also fined Zhu and Davies, along with Mark Lamb and Leslie Lamb. While the individuals paid the fine, the exchange is yet to pay it.
