Singapore’s central bank has imposed nine-year prohibition orders on Kyle Davies and Su Zhu, accusing them of breaching the nation’s securities laws with their jointly established cryptocurrency hedge fund, Three Arrows Capital (3AC).
In a statement released on September 14, the Monetary Authority of Singapore (MAS) announced that Zhu and Davies have been prohibited from engaging in regulated activities, effective from September 13.
Additionally, they are not allowed to assume roles such as managing, serving as a director, or holding a significant ownership stake in any capital market services business within Singapore.
In June 2022, they had already criticized the fund for giving false information to the public and for the involvement of Zhu and Davies in Three Arrows’ entities in Singapore and the British Virgin Islands.
MAS found that Three Arrows Capital did not inform them when they appointed a new fund manager. They also falsely claimed to MAS that this manager was not involved in regulated activities. Further, Three Arrows Capital did not have the right risk management practices in place, which were required by MAS.
“MAS takes a serious view of Mr. Zhu’s and Mr. Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties. MAS will take action to weed out senior managers who commit such misconduct,” Loo Siew Yee, Assistant Managing Director of Policy, Payments & Financial Crime said in a release.
In August, the 3AC-founded OPNX, which is associated with Zhu and Davies, received a hefty fine of almost $2.8 million from Dubai’s Virtual Assets Regulatory Authority (VARA).
Also Read: Singapore Seizes $735M From Money Laundering, Including Crypto
