Founders of Three Arrows Capital Banned by Singapore Regulators
Kyle Davies and Zhu Su, the founders of Three Arrows Capital (3AC), have been banned by Singapore regulators from participating in regulated activities or serving as top executives at any financial firm in the country for nine years. The Monetary Authority of Singapore (MAS) issued the ban due to their alleged violation of Singapore’s securities laws at the 3AC hedge fund.
Davies and Zhu Banned from Regulated Activities
The MAS has banned Kyle Davies and Su Zhu from participating in regulated activities and serving as executives for any financial firm in Singapore for a period of nine years. This ban started on September 13. They are prohibited from performing any regulated activity and from taking part in the management of, acting as a director of, or becoming a substantial shareholder in any capital market services firm under the Securities and Futures Act.
MAS Takes Action Against Violation of Securities Laws
The MAS decided to impose the nine-year ban on Zhu and Davies after they allegedly contravened Singapore’s securities laws. The hedge fund 3AC went into liquidation following a default on a $670 million loan from Voyager Capital. Loo Siew Yee, Assistant Managing Director at MAS, expressed serious concern about their disregard for regulatory requirements and dereliction of their directors’ duties, stating that MAS will take action against senior managers who engage in such misconduct.
3AC Founders Launch New Crypto Exchange
Despite their ban, Zhu and Davies launched a new crypto exchange called OPNX. The exchange opened earlier this year and introduced its native token, $FLEX. Additionally, the founders announced their intention to donate their future earnings from OPNX to creditors who suffered losses due to 3AC’s demise in 2022.
Hot Take: Founders of Three Arrows Capital Banned by Singapore Regulators
The founders of Three Arrows Capital, Kyle Davies and Zhu Su, have been banned by Singapore regulators from participating in regulated activities or serving as top executives at any financial firm in the country for nine years. The ban was imposed due to their alleged violation of Singapore’s securities laws at the 3AC hedge fund. This action highlights the seriousness with which regulators view misconduct in the financial industry and serves as a warning to other senior managers. It also raises questions about the future of their new crypto exchange, OPNX, and their commitment to compensating creditors who suffered losses from 3AC’s collapse.
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