The Monetary Authority of Singapore (MAS) has banned failed hedge fund Three Arrows Capital (3AC) founders Kyle Davis and Su Zhu from engaging in regulated business activities in the country for nine years.
According to the regulator, Davis and Zhu violated a number of securities and futures laws and regulations.
3AC co-founders are also prohibited from participating in the management of companies, holding director positions, providing financial services or becoming major shareholders in the capital markets.
During a detailed investigation, MAS identified additional violations by the hedge fund and its managers between August 2020 and January 2022. In particular, they related to the failure to inform the department about the appointment of a new portfolio manager, as well as the lack of a risk management system.
“MAS takes seriously Zhu and Davis’ blatant disregard for regulatory requirements and failure to perform their duties as directors. The department will take measures to eliminate top managers who commit such offenses,” the resolution says.
In April, the co-founders of the hedge fund announced the launch of a new crypto exchange, OPNX.
The CEO position was taken by Leslie Lamb, wife of former CoinFLEX CEO Mark Lamb. She later criticized investors who distanced themselves from the company.
In July, Davis pledged to donate potential revenue from the new platform to 3AC lenders for “good karma.”
Let us recall that in August it became known about a hearing on disagreements between DeFiance Capital and Teneo, a firm representing the interests of 3AC liquidators, regarding the status of assets worth $141 million.