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A regulatory agency in Singapore is hitting the founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) with a nine-year ban a month after they got slapped with a huge fine from authorities in Dubai.
In a new announcement, the Monetary Authority of Singapore (MAS) that 3AC founders Kyle Davies and Zhu Su are banned for nine years for violating the Securities and Futures Act (SFA) of 2001.
“Under the [prohibition orders], which took effect [on] 13 September 2023, Mr. Zhu and Mr. Davies will be prohibited from performing any regulated activity and from taking part in the management of, acting as a director of or becoming a substantial shareholder, of any capital market services firm under the SFA.”
Furthermore, the regulatory agency says that between August 2020 and January 2022, the duo failed to notify MAS of the employment of their portfolio manager, provided false information to the MAS, and failed to have appropriate risk management protocols in place.
As stated by Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime) of MAS,
“Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors. MAS takes a serious view of Mr Zhu’s and Mr Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties. MAS will take action to weed out senior managers who commit such misconduct.”
In August, Davies and Zhu were with a $2.8 million fine from the Virtual Assets Regulatory Authority (VARA) of Dubai for violating regulations.
