Three Arrows Capital allegedly exceeded the asset under management (AUM) threshold set by the Monetary Authority of Singapore.
The MAS also noted that 3AC provided misleading information regarding the management of its fund and changes in company hierarchy.
Singapore’s top regulator started looking into the matter in June 2021. The MAS is currently investigating other possible violations by Su Zhu’s firm.
Chief Fintech Officer Sopnendu Mohanty previously said the agency will be brutal to bad crypto companies.
The Monetary Authority of Singapore has reprimanded crypto hedge fund Three Arrows Capital for exceeding the set asset under management (AUM) threshold and providing the regulator with misleading information regarding company activities.
Authorities reportedly started investigating the matter around June 2021, per the statement published on Thursday.
Founded by Su Zhu and Kyle Davies in 2012, 3AC is a crypto-focused hedge fund based in Singapore. The firm remains in the spotlight following Terra’s collapse as the company is under the cosh and struggling to stay afloat.
According to the MAS, Three Arrows Capital provided ingenuine information regarding its fund management operations in Singapore. Authorities claim that the contraventions in question happened sometime between September 2021 and April 2022.
Singapore’s top regulator stated that 3AC failed to notify authorities about changes to directorships and shareholdings as well.
Three Arrows Capital also exceeded its allocated AUM limit in multiple timeframes between July 2020 and August 2021, per the MAS statement.
Authorities stressed that further probes are in place to determine if other violations occurred.
MAS Cracks Down on Three Arrows Capital And Bad Players In Crypto
Earlier in June, Chief fintech officer Sopnendu Mohanty opined that the MAS would be “brutal and unrelentingly hard” on bad actors in the crypto sector.
Mohanty stated that Singapore could maintain a strict approach to crypto in a bid to mitigate financial risks and ensure investor protection. The MAS currently has a rigid licensing policy and only about 14 companies have managed to secure the regulatory nod.
Crypto.com, Genesis, and Sparrow Tech are the latest firm to bag approvals, as reported by EthereumWorldNews.