Three Arrows Capital Founders Hit With Ban
The Monetary Authority of Singapore (MAS) has imposed a nine-year prohibition order on the founders of Three Arrows Capital, effectively barring them from engaging in Singapore’s regulated financial services industry. This order extends to Su Zhu and Kyle Davies, preventing them from participating in any regulated activities and assuming managerial roles, directorships, or substantial shareholding positions in capital market services firms, as outlined in the official announcement.
MAS’s decision to issue the prohibition order stems from its prior investigation into Three Arrows Capital. In June 2022, MAS reprimanded the fund for disseminating false information to the public and for the involvement of Zhu and Davies in Three Arrows’ entities based in Singapore and the British Virgin Islands. The regulator highlighted that Three Arrows Capital had failed to inform MAS of the appointment of a new fund manager, falsely represented to MAS that this manager was not engaged in regulated activities, and neglected to establish an adequate risk management framework.
Loo Siew Yee, Assistant Managing Director of Policy, Payments & Financial Crime, emphasized the importance of senior management in fund management firms implementing robust risk management measures to safeguard investors’ interests. She stated, “MAS views Mr. Zhu’s and Mr. Davies’ blatant disregard for MAS’ regulatory requirements and their neglect of their directorial responsibilities with great seriousness. MAS will take measures to remove senior managers who engage in such misconduct.”
In a separate development, Zhu and Davies’ most recent venture, the crypto bankruptcy claims exchange known as OPNX, incurred a fine of nearly $2.8 million from Dubai’s Virtual Assets Regulatory Authority (VARA) in August. As of September 14, this fine remains outstanding and unpaid, as indicated by a copy of the notice.
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