On Wednesday, it was reported that the crypto hedge fund Three Arrows Capital (3AC) was liquidated by a British Virgin Islands court and following the alleged liquidation, the Monetary Authority of Singapore (MAS) has reprimanded 3AC for misleading regulators. Furthermore, reports claim that liquidators in Singapore are attempting to seize the properties owned by 3AC co-founder Su Zhu and his wife.
Monetary Authority of Singapore Accuses 3AC of Misleading Regulators and Exceeding AUM limits
The troubled crypto hedge fund Three Arrows Capital Ltd., otherwise known as 3AC, seems to be facing issues from regulators in Singapore. Since 2012, 3AC was a well known crypto hedge fund that was started by two former Credit Suisse traders — Su Zhu and Kyle Davies. However, after being quite successful, 3AC allegedly invested heavily into Terra’s LUNA after Zhu insisted that crypto companies “don’t want to be blown out during a supercycle.” It is assumed that one issue 3AC dealt with was an investment of $200 million locked luna classic (LUNC) which is now worth less than $1K.
“You don’t want to be blown out during a supercycle”@zhusu on @UpOnlyTV with @cobie and @ledgerstatus pic.twitter.com/fYqCXukGNN
— Gabriel Haines.eth (@gabrielhaines) June 30, 2022
“There is speculation that the massive losses of [LUNC] caused them to use more leverage to earn it back — Also known as ‘Revenge trading,’” one account explained on June 16. Two weeks ago, The Block’s Frank Chaparro cited sources that said the crypto hedge fund 3AC was liquidated for $400 million. Reports published the same week indicate that 3AC was liquidated by Bitmex, Deribit, Bitfinex, and possibly FTX as well. Sources noted two days ago, that a British Virgin Islands (BVI) court liquidated the hedge fund’s assets as well, but the sources did not disclose what type of assets were allegedly seized.
Following the ostensible BVI liquidation notice, the Monetary Authority of Singapore (MAS) published a press release that says 3AC misled regulators. “The Monetary Authority of Singapore today reprimanded Three Arrows Capital Pte. Ltd. (3AC) for providing false information to MAS and exceeding the assets under management (AUM) threshold allowed for a registered fund management company (RFMC),” the press release reveals. The MAS violation notice mentions that the regulator has been investigating 3AC’s contraventions “since June 2021.”
3AC is also accused of breaching the…
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