A regulator in Singapore is hitting the founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) with a nine-year ban, a month after they were slapped with a huge fine by authorities in Dubai.
In a new announcement, the Monetary Authority of Singapore (MAS) says 3AC founders Kyle Davies and Zhu Su will be banned for nine years for violating the Securities and Futures Act (SFA) 2001.
“Below the [prohibition orders]which came into effect [on] From September 13, 2023, Mr Zhu and Mr Davies will be prohibited from engaging in any regulated activity and from participating in the management of, acting as a director of or becoming a substantial shareholder of a capital markets services provider under the SFA.”
Furthermore, the regulator says that between August 2020 and January 2022, the duo failed to notify MAS of the appointment of their portfolio manager, provided false information to MAS and did not have proper risk management protocols in place.
As Loo Siew Yee, MAS Deputy Director (Policy, Payments and Financial Crime) says,
“Senior management of fund managers must implement robust risk management measures to protect the interests of investors. MAS is taking a serious look at Mr Zhu and Mr Davies’ blatant disregard of MAS legal requirements and neglect of the duties of their directors. MAS will take action to root out senior managers who commit such misconduct.”
In August, Davies and Zhu were fined $2.8 million by Dubai’s Virtual Assets Regulatory Authority (VARA) for breaching regulations.
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