MAS has determined that Singapore-based hedge fund Three Arrows Capital has periodically exceeded its assets under management (AUM) limit. In addition, MAS announced that it provided misleading and incomplete information about the activities of 3AC.

In a statement today, The Monetary Authority of Singapore (MAS) reported that it has been investigating the company since June 2021. Founded by Su Zhu and Kyle Davies in 2012, Three Arrows Capital was operating as a crypto hedge fund. After the collapse of Terra, the company, whose financial structure deteriorated due to its investments in this platform, remains at the center of the crypto agenda.

The Monetary Authority of Singapore

In a statement made by MAS, it was reported that the company was granted a hedge fund license in 2013, provided that the assets under management did not exceed $ 250 million. However, research has shown that 3AC has exceeded the asset under management (AUM) threshold between July - September 2020 and November 2020 - August 2021. In addition, 3AC did not notify the regulator of the management and shareholder changes.

MAS officials emphasized that investigations are ongoing as to whether Three Arrows Capital has committed other violations. Things are getting worse and worse for Three Arrows Capital. Prior to this development, a court order in the British Virgin Islands ordered the dissolution of 3AC. The court appointed Teneo, a financial advisory firm, to process the liquidation. Now Teneo will work to protect 3AC's assets and identify creditors.

three arrows capital

Singapore has become a prominent country with strict crypto rules in recent years. Country authorities, which occasionally take a crypto-friendly approach, have an extremely strict authorization policy with the aim of creating a safe trading environment. Currently, there are only 14 crypto companies in the country that can meet the necessary conditions and obtain a license. Most recently, Crypto.com, Genesis, and Sparrow Tech have become companies licensed to operate in Singapore.