Indeed, Three Arrows Capital also found itself on the radar of the Monetary Authority of Singapore (MAS), which reprimanded it for providing false information and exceeding the assets under management (AUM) threshold allowed for a registered fund management company (RFMC), the watchdog said on June 30. Specifically, the city-state’s financial regulator stated that 3AC had obtained its RFMC status in August 2013, “which allowed it to carry on fund management business with no more than 30 qualified investors and manage assets of no more than S$250 million” or $180 million USD. According to the statement:
Three Arrows Capital’s transgressions
The MAS has been investigating the company for a year, as they explained: These contraventions include “failure to ensure that information provided to MAS is not false or misleading,” “failure to notify MAS of changes to directorships and shareholdings,” as well as “prolonged breach of the AUM threshold.” Finally, MAS hinted that its inquiry process isn’t over yet, as it concluded that:
Liquidation and other troubles
Earlier, the Singapore-based hedge fund business, established in 2012 by former schoolmates Su Zhu and Kyle Davies, made headlines due to a court in the British Virgin Islands ordering its dissolution, further exacerbating the crisis that has engulfed the crypto market on a worldwide scale, as Finbold reported. The liquidation ensued shortly after the Toronto-based crypto broker Voyager Digital Ltd. announced that its operational subsidiary had filed a notice of default to Three Arrows Capital since it failed to make the due payments on its previously disclosed loan of 15,250 Bitcoin (BTC) and $350 million USDC.
