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MAS Bans 3AC Founders from Participating in Regulated Activities

MAS Bans 3AC Founders from Participating in Regulated Activities

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The founders of Three Arrows Capital (3AC), 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 Monetary Authority of Singapore (MAS) issued a nine-year ban on Kyle Davies and Su Zhu from participating in regulated activities and serving as executives for any financial firm in Singapore. The founders of the now-bankrupt Three Arrows Capital (3AC) received the prohibition order over their alleged violation of Singapore’s securities laws at the 3AC hedge fund.

The MAS explained:

“The Monetary Authority of Singapore (MAS) has issued nine-year prohibition orders (POs) against Mr Zhu Su and Mr Kyle Livingston Davies for contraventions of the Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR). Mr Zhu was the Chief Executive Officer and Director of Three Arrows Capital Pte Ltd (TACPL), while Mr Davies was the Chairman and Director.”

Davies and Zhu Banned from Regulated Activities

Singapore’s central bank, the MAS, said in a statement that the duo were banned from regulated activities during the banning period, which started on September 13. 

According to the statement,

“Under the POs, which took effect from 13 September 2023, Mr Zhu and Mr Davies will be prohibited from performing any regulated activity and from taking part in the management of, acting as a director of or becoming a substantial shareholder, of any capital market services firm under the SFA.” 

MAS decided to institute the nine-year ban after Zhu and Davies allegedly contravened Singapore’s securities laws. 3AC fell into liquidation after the hedge fund defaulted on a $670 million loan from Voyager Capital. 

Mr Loo Siew Yee, Assistant Managing Director MAS, said:

“Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors. 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.”

 3AC Founders Launch New Crypto Exchange

Zhu and Davies initially announced they were raising $25 million to start their new crypto exchange, OPNX. OPNX officially opened for trading and business earlier this year and launched its native token, $FLEX. 

The co-founders of 3AC then announced their intention to donate their future earnings from OPNX to creditors who lost money after 3AC’s demise in 2022. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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