Davies

The post <a rel="nofollow" href="https://coinpedia.org/news/singapore-regulators-ban-three-arrows-capital-founders-for-9-years/">Singapore Regulators Ban Three Arrows Capital Founders for 9 Years</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
The founders of the now-defunct crypto hedge fund Three Arrows Capital have been <a href="https://www.sgpc.gov.sg/detail?url=/media_releases/mas/press_release/P-20230914-1&amp;authkey=e57c04c7-59be-44a5-be72-94be999377f4">handed</a> a nine-year ban by the Monetary Authority of Singapore (MAS) for violating the Securities and Futures Act (SFA) and the Securities and Futures (Licensing and Conduct of Business) Regulations (SFR). The consequences are serious and they are barred from engaging in regulated financial activities for a specific period of time. This also means they cannot hold managerial positions, act as directors, or become major shareholders in any capital market services company under Singapore’s Securities and Futures Act.&nbsp; 
<h2 id="zhu-and-davies-are-banned-for-9-years-possible-implications" data-name="zhu-and-davies-are-banned-for-9-years-possible-implications" class="wp-block-heading">Zhu and Davies Are Banned for 9 Years, Possible Implications</h2> 
According to the Bloomberg <a href="https://www.bloomberg.com/news/articles/2023-09-14/singapore-bans-zhu-davies-over-crypto-hedge-fund-three-arrows">report</a>, the MAS accused Three Arrows Capital has accused them of providing false info and not following the regulatory guidelines. According to Loo Siew Yee, assistant managing director for policy, payments &amp; financial crime at MAS, expressed strong disapproval, stating that they take a serious view of Zhu and Davies’ blatant disregard for regulatory requirements and their neglect of their directorial duties. 
Looking at the past horrors, the hedge fund, Three Arrows, collapsed in 2022 due to misguided leveraged crypto investments. This significantly contributed to a massive $2 trillion drop in the digital asset market, causing a wave of further collapses and bankruptcies in the sector.&nbsp; 
It is being noted that further the liquidation process Three Arrows’ Zhu and Davies of not fully cooperate with their investigation. The agency is trying to recover $1.3 billion from the two, which represents the losses incurred in the months leading up to the fund’s collapse. 
In his previous statement, Zhu claimed that their sincere attempts to cooperate with the liquidators were met with resistance. In email correspondence submitted to a New York bankruptcy court, counsel to Davies and Zhu stated that the court orders obtained by the liquidators were without a valid basis.&nbsp; 
In August, Su Zhu and Kyle Davies were involved in another business called OPNX, which deals with crypto bankruptcy claims. This business was <a href="https://coinpedia.org/news/three-arrows-capital-co-founders-slapped-with-a-hefty-2-7m-fine-by-vara-over-new-digital-asset-exchange-opnx/" target="_blank" rel="noreferrer noopener">fined</a> almost $2.8 million by Dubai’s regulatory authority for virtual assets. As of <a href="https://www.vara.ae/en/regulations/regulatory-notices/vara-notice-of-fines-opnx-exchange/" target="_blank" rel="noreferrer noopener">September 14</a>, this fine hasn’t been paid yet. OPNX is registered in Seychelles.

Singapore Regulators Ban Three Arrows Capital Founders for 9 Years

Table of Contents

CoinPedia News

Other articles published on Sep 14, 2023

Telegram announces integration of TON crypto wallet, token price sees 11% uptick

OKX Switch McLaren MCL60 Race Car To Stealth Mode For The Singapore Grand Prix

Blockchain Titans: Astar Network and Polygon Labs Redefine Cross-Chain

Milady NFT Collection in Loss as Developer Stolen $1M in Fees

These Presales Are Setting Records and Set To Go 10x – And They’re Going to End Soon

European lawmakers approve crypto tax regulatory initiative

Join our free newsletter for daily crypto updates!