Three Arrows Founders Hit With 9-Year Trading Ban in Singapore

Singapore’s fiscal regulator has issued a nine-year prohibition bid against the founders of Three Arrows Capital, which prohibits them from operating successful the country’s regulated fiscal services industry.

Su Zhu and Kyle Davies volition beryllium prohibited from performing immoderate regulated enactment and from taking portion successful the absorption of, acting arsenic a manager of, oregon becoming a important shareholder, of immoderate superior marketplace services firm, the merchandise says.

MAS says the prohibition bid comes aft the regulator began investigating Three Arrows Capital after it reprimanded the fund successful June 2022 for providing mendacious accusation to the nationalist and the relation Zhu and Davies played successful Three Arrows’ Singapore and British Virgin Island entities.

The regulator says that Three Arrows’ failed to notify MAS of the assignment of a caller money manager, falsely claimed to MAS that this manager wasn’t conducting regulated activities, and failed to person successful spot an due hazard absorption framework.

“Senior absorption of money managers are required to instrumentality robust hazard absorption measures to support the involvement of investors,” Loo Siew Yee, Assistant Managing Director of Policy, Payments & Financial Crime said successful a release. “MAS takes a superior presumption of Mr. Zhu’s and Mr. Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties. MAS volition instrumentality enactment to weed retired elder managers who perpetrate specified misconduct.”

In August, Zhu and Davies’ latest venture, crypto bankruptcy claims speech OPNX, was fined astir $2.8 million by Dubai’s Virtual Assets Regulatory Authority (VARA).

OPNX is registered successful Seychelles.

UPDATE (Sept. 14, 04:12 UTC): Adds details and background.