Singapore central bank imposes nine-year ban on 3AC founders

The Central Bank of Singapore (MAS) has reprimanded the founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) and imposed a ban. This is according to an official statement of authority.

Specifically, the Central Bank of Singapore prohibits Su Zhu and Kyle Davies from "carrying on a regulated activity and participating in the management of a capital markets services company, acting as a director or becoming a major shareholder as required by the SFA (Securities and Futures Act)," the report said. MAS accuses 3AC's founders of providing false information and failing to carry out appropriate risk management.

"Management of fund managers must implement robust risk management measures to protect investors' interests," said Loo Siew Yee, deputy director of policy, payments and financial crime at the central bank. And further, "MAS takes seriously the serious manner in which Mr. Zhu and Mr. Davies ignore MAS regulations and the extent to which their managers neglect their duties. MAS will take action to remove senior managers guilty of this type of misconduct."

3AC officially filed for bankruptcy in July 2022. Triggered by the Terra Crash, the hedge fund reportedly ran into financial trouble. Meanwhile, the two 3AC founders began a new project.