A Nine-Year Ban for 3AC Founders Kyle Davies and Zhu Su
The founders of Three Arrows Capital (3AC), a bankrupt crypto hedge fund, have been hit with a nine-year ban by the Monetary Authority of Singapore (MAS) for violating the Securities and Futures Act (SFA) of 2001. Kyle Davies and Zhu Su are prohibited from performing any regulated activity and participating in the management of any capital market services firm under the SFA.
MAS found that between August 2020 and January 2022, Davies and Su failed to inform MAS about employing their portfolio manager, provided false information to MAS, and lacked appropriate risk management protocols. Loo Siew Yee, Assistant Managing Director of MAS, stated that senior management of fund managers should implement robust risk management measures to protect investor interests.
Fines from Dubai’s Virtual Assets Regulatory Authority
In August, Davies and Su were fined $2.8 million by Dubai’s Virtual Assets Regulatory Authority (VARA) for violating regulations. This recent ban from MAS adds to the legal troubles faced by the founders of 3AC.
Hot Take: Serious Consequences for Regulatory Violations
The ban imposed by the Monetary Authority of Singapore on 3AC founders Kyle Davies and Zhu Su demonstrates the serious consequences that can arise from regulatory violations in the cryptocurrency industry. In addition to a significant fine from Dubai’s regulatory authority, the founders are now facing a nine-year ban from engaging in regulated activities in Singapore. This action highlights the importance of adhering to regulatory requirements and implementing robust risk management measures to protect investor interests. As cryptocurrency continues to evolve, regulators are taking a strong stance against misconduct within the industry.
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