SINGAPORE: The founders of bankrupt cryptocurrency hedge fund Three Arrows Capital – Zhu Su and Kyle Livingston Davies – have been issued nine-year prohibition orders by the Financial Authority of Singapore (MAS).
Zhu was the CEO and director of Three Arrows Capital whereas Davies was the chairman and director.
Three Arrows Capital was the primary main crypto agency to go bankrupt in 2022, introduced down by the collapse of cryptocurrencies Luna and TerraUSD. It filed for chapter within the British Virgin Islands in late June that 12 months, in response to a Reuters report.
The prohibition orders took impact from Wednesday (Sep 13), MAS stated in a information launch on Thursday.
Zhu and Davies shall be prohibited from performing any regulated exercise and from collaborating within the administration of, performing as a director of or turning into a considerable shareholder, of any capital market companies agency beneath the Securities and Futures Act.
MAS had reprimanded Three Arrows Capital in June final 12 months for offering false data and failing to inform the authority about adjustments to Zhu’s and Davies’ directorship and shareholdings.
The corporate was additionally discovered then to have exceeded the belongings beneath administration threshold allowed for a registered fund administration firm, stated MAS.
Upon additional investigations into Three Arrows Capital, Zhu and Davies, MAS discovered that the corporate had dedicated additional violations of the Securities and Futures Act and the Securities and Futures Rules between August 2020 and January 2022.
The corporate had did not notify MAS throughout the required timeframe of the employment of a consultant. Between August 2020 and September 2021, Three Arrows Capital employed Cheong Jun Yoong Arthur to be a portfolio supervisor, to carry out fund administration actions on behalf of the corporate
The corporate additionally gave MAS false data. In January 2022, it falsely claimed it didn’t inform MAS about Cheong’s employment as a result of he “didn’t perform any regulated exercise”.
“In actual fact, Mr Cheong had carried out fund administration exercise on Three Arrows Capital’s behalf between August 2020 and September 2021,” stated MAS.
