MAS takes aim at Three Arrows Capital, does not impose penalty

Pradipta Mukherjee
·1 min read

The Monetary Authority of Singapore (MAS) has “reprimanded” cryptocurrency hedge fund Three Arrows Capital (3AC) for misleading information and ignoring assets under management (AUM) limits, the central bank said in a statement on Thursday.

See related article: Three Arrows Capital lines up for liquidation

Fast facts

  • In August 2013, 3AC obtained its registered fund management company (RFMC) status which permitted a max AUM of SG$250 million (about US$179 million).

  • 3AC exceeded its AUM limit from July 2020 to September 2020 and between November 2020 and August 2021, according to MAS.

  • “[3AC] novated the management of the only fund it managed to an offshore entity in the British Virgin Islands on 1 September 2021,” the central bank said in its statement.

  • While it resumed management of a portion of the fund’s assets in February 2022, 3AC notified MAS on 29 April 2022 of its intent to cease fund management activity in Singapore with effect from 6 May 2022, MAS added.

  • This representation was misleading as 3AC and the offshore entity shared a common shareholder, Su Zhu, who is also a director of 3AC.

  • 3AC also failed to inform MAS of changes in the shareholdings of its directors, Su Zhu and Kyle Livingston Davies, within the required timeline.

  • The city-state’s central bank did not impose penalties on 3AC, but said it is assessing if there were further breaches by the company.

See related article: Contagion risk from Three Arrows Capital weighs on Bitcoin, crypto