The Monetary Authority of Singapore has today reprimanded Three Arrows Capital, 3AC for misinformation, failure to notify changes and exceeding the AuM threshold. The MAS has been investigating the hedge fund since June last year.
Three Arrows Capital in more trouble
In 2013, the MAS had granted the registered status of Three Arrows Capital on the condition that the value of its assets remained below S$250 million.
“In August 2013, TAC obtained its RFMC status, enabling it to conduct fund management activities with no more than 30 qualified investors and manage assets of no more than S$250 million.”
According to the latest release, the authority noted that the company had crossed the AuM threshold several times. One between July and September 2020 and the other between November 2020 and August 2021.
The MAS has also reprimanded the hedge fund for failing to report changes in directorships and share ownership. The regulatory body has further argued that 3AC failed to notify it of the joint shareholder of Three Arrows Capital’s offshore entity, Su Zhu, who is also the director of the company.
It is also worth recalling that a court in the British Virgin Islands recently ordered the liquidation of 3AC. The court ruled on June 27. According to community members, the liquidation would mark a turning point in the ongoing disintegration of the crypto industry that has been accelerating lately.
Taking the same into account, the MAS revealed that it is still assessing whether the company has crossed another line or not.
“In light of recent developments that question the solvency of the TAC-managed fund, MAS is assessing whether there have been further breaches of MAS’s regulations by TAC.”
As highlighted in an article yesterday, the Singapore-based company’s insolvency will be handled by Teneo Restructuring partners. Teneo’s main task is to protect 3AC’s assets.