Singapore Regulator Imposes Nine-Year Ban on 3AC Founders Kyle Davies and Zhu Su Following Dubai Fines

A regulatory agency in Singapore is hitting the founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) with a nine-year ban a month after they got slapped with a huge fine from authorities in Dubai.

"Singapore's MAS Imposes Nine-Year Ban on 3AC Founders Kyle Davies and Zhu Su for SFA Violations"

In a recent announcement, the Monetary Authority of Singapore (MAS) has issued a nine-year ban against 3AC founders Kyle Davies and Zhu Su for violating the Securities and Futures Act (SFA) of 2001.

"Under the prohibition orders, effective as of September 13, 2023, Mr. Zhu and Mr. Davies are prohibited from engaging in any regulated activity and from participating in the management of, serving as directors, or becoming substantial shareholders of any capital market services firm under the SFA."

Additionally, the regulatory agency stated that between August 2020 and January 2022, the pair failed to notify MAS of the employment of their portfolio manager, provided false information to MAS, and did not implement proper risk management protocols.

According to Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime) of MAS:

"Senior management of fund managers are required to implement robust risk management measures to protect the interests 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."

In August, Davies and Zhu received a $2.8 million fine from the Virtual Assets Regulatory Authority (VARA) of Dubai for regulatory violations.

Sep 15, 2023

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