Singapore’s central bank and financial regulatory body, The Monetary Authority of Singapore (MAS), stated that the striving cryptocurrency hedge fund, Three Arrows Capital (3AC), gave incorrect and inaccurate information and also managed more assets under management than was required. MAS revealed the arraignment in a notice released on Thursday (June 30, 2022). The Singaporean regulator, Three Arrows Capital, executed practices in contravention of MAS regulations. The crypto hedge became a registered fund management company (RFMC) in Singapore in August 2013. As an RFMC, Three Arrows was permitted to manage funds of a maximum of 30 qualified investors and anchor up to $250 million in assets under management (AUM).

Moreover, 3AC went past the required AUM limit on two different occasions between July and September 2020 and between November 2020 and August 2021. 

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Also, according to MAS, Three Arrows “novated the management of its fund” to a varied offshore entity in the British Virgin Islands in September 2021. But according to the financial watchdog, the representation was “misleading” due to the fact that Su Zhu, a director, and co-founder of 3AC, was a common shareholder in the crypto company and also the offshore entity.

Another issue that MAS brought to notice was that 3AC did not inform the financial watchdog about changes made in the directorship and shareholdings of its directors Su Zhu and Kylie Livingstone Davies.

A section of the notice read: 

“In light of recent developments which call into question the solvency of the fund managed by TAC, MAS is assessing if there were further breaches by TAC of MAS’ regulations.”

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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