The Monetary Authority of Singapore (MAS) has banned Su Zhu and Kyle Davies, the founders of Three Arrows Capital, from managing or becoming a substantial shareholder of any capital market services firm.

Three Arrows Capital was a cryptocurrency hedge fund that collapsed in May 2023, sending ripple effects across the industry.

MAS found that the company had provided false information to the regulator, failed to notify the regulator of changes to its board of directors and shareholdings, and exceeded the assets under management threshold allowed for a registered fund management company.

The regulator also discovered that Three Arrows Capital did not have in place a risk management framework to identify, monitor, and address risks associated with its cryptocurrency and digital asset investments.

MAS said that Su Zhu and Kyle Davies had failed to discharge their duties and were responsible for the company’s breaches.

MAS Assistant Managing Director (Policy, Payments and Financial Crime), Ms Loo Siew Yee

Loo Siew Yee

Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime) at MAS said,

“Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors.

MAS takes a serious view of Mr Zhu’s and Mr Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties. MAS will take action to weed out senior managers who commit such misconduct.”

Print Friendly, PDF & Email