The Monetary Authority of Singapore (MAS) has reprimanded Three Arrows Capital (3AC/TAC) for sharing misleading information as required by law.
As contained in a press release shared by the Singaporean regulator, the company did not only withhold accurate information, it notably exceeded the S$250 million Asset Under Management (AUM) management established by the body for licensed asset managers in the country.
MAS outline a few of the exact offenses of Three Arrows Capital including the false claims that it novated its business to an entity in the British Virgin Islands (BVI). Investigations from the apex monetary regulator showed that these claims proved untrue as both entities in Singapore and BVI had the same shareholder in the person of Su Zhu.
Despite the MAS not revealing how much the company exceeded the S$250 million AUM threshold, it is perceived, considering the figures of liquidation the firm has been accused of by the likes of Voyager Digital, that the amount is pegged in billions of dollars.
The MAS did not make it clear whether it will pursue any form of regulatory actions against TAC or Su Zhu, it, however, confirmed that it is still looking into the company to see whether it has violated more of its laid down rules as a registered fund management company (RFMC) operating in the country.
The Liquidation of Three Arrows Capital
A court in the British Virgin Islands earlier this week ordered the liquidation of Three Arrows Capital, a move that shows how the biggest companies in the digital currency ecosystem are unable to withstand the impact of the ongoing crypto meltdown.
With Teneo Restructuring in charge of the liquidation, sources claimed the entire process is in its earliest phase, and consideration is being given to the hedge fund’s creditors.
Perhaps 3AC took on a very higher risk profile through its high leverage trading and bad investments like that made into Terraform Labs’s Luna Classic (LUNC), and its sister algorithmic stablecoin, USTC.
The coming days will unveil the next steps for the hedge fund’s clients or creditors, as well as its portfolio which includes Orderly Network.