- Zhu and Davies may not operate in Singapore’s finance industry for 9 years
- MAS censured 3AC for providing misleading information to the public
The Monetary Authority of Singapore (MAS) issued a nine-year ban against Su Zhu and Kyle Davies, who founded failed hedge fund Three Arrows Capital, CoinDesk reported.
Zhu and Davies are prohibited from operating in Singapore’s financial services industry. They may not provide financial services or manage, direct, or become substantial shareholders of any capital market services business.
Misleading information
MAS censured 3AC for providing misleading information to the public in June last year, and the prohibition order comes in the wake of the censure. The financial regulator also criticized Zhu and Davies for their acts involving Three Arrows’ Singapore and British Virgin Island entities.
According to MAS, Three Arrows failed to notify the regulator that it had appointed a new fund manager, did not put a suitable risk management policy in place, and concealed the fact that the new manager was carrying out unregulated activities.
In a press release, Loo Siew Yee, Assistant Managing Director of Policy, Payments & Financial Crime commented:
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.
Take a number
MAS is just one of many regulators who have taken issue with 3AC’s acts and omissions. The US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) launched an investigation into whether 3AC broke the law by not registering with them and deceiving investors about its balance sheet last October.
Outstanding $2.8M fine in Dubai
Dubai’s Virtual Assets Regulatory Authority levied a fine of $2.8 million on crypto bankruptcy claims exchange OPNX, Davies and Zhu’s latest venture, in August. According to recent information, they have not paid the fine yet. The claims exchange is registered in the Seychelles.
Moving forward
In July, Davies tweeted that he would donate part of the earnings from OPNX to creditors who lost money in 3AC’s 2022 collapse.
