Lianhe Zaobao: Cryptocurrency hedge fund Three Arrows Capital was reprimanded by the Monetary Authority of Singapore for providing false information and managing assets exceeding regulations

Three Arrows Capital, a cryptocurrency hedge fund that was caught in a funding and liquidation dilemma due to the collapse of stablecoins TerraUSD and Luna tokens, was reprimanded by the Monetary Authority of Singapore for providing false information to the authority and exceeding the total assets under management (AUM) regulations.

According to a statement from the Monetary Authority of Singapore, Three Arrows Capital obtained the qualification of a registered fund management company in August 2013 and was allowed to operate fund management business with no more than 30 qualified investors and assets under management not exceeding HK$250 million.

On April 29 this year, the company notified the MAS that it intended to cease its fund management activities locally from May 6. The MAS's censure of the company was related to its previous violations of the Securities and Futures Act and the Securities and Futures Act (Licensing and Business Conduct) Regulations.

As of March this year, Three Arrows Capital, founded by Zhu Su and former Credit Suisse trader Kyle Davies, had an estimated US$10 billion (S$14 billion) in total assets under management, according to Bloomberg. Three Arrows Capital invested about US$200 million in Luna, according to the Wall Street Journal.

In addition, the company's total managed assets from July to November 2020 also exceeded the legally permitted amount of RMB 250 million.

The court of the British Virgin Islands ordered the liquidation of Three Arrows Capital on Monday (27th), and consulting firm Teno was appointed to handle liquidation matters.

Among them, the company stated that the statement that the only fund it managed was transferred to an unrelated British Virgin Islands offshore entity on September 1 last year was misleading because Three Arrows Capital and this offshore entity had a common shareholder, Zhu Su (transliteration), who was also a director of Three Arrows Capital.

Three Arrows Capital, a cryptocurrency hedge fund that was caught in a funding and liquidation dilemma due to the collapse of stablecoins TerraUSD and Luna tokens, was reprimanded by the Monetary Authority of Singapore for providing false information to the authority and exceeding the total assets under management (AUM) regulations.

The MAS said that in light of recent developments, it is assessing whether Three Arrows Capital has violated further MAS regulations.