Kyle Davies and Su Zhu, Co-Founders of Crypto Hedge Fund Three Arrows Capital, Receive Prohibition Orders
Singapore’s central bank, the Monetary Authority of Singapore (MAS), has issued nine-year prohibition orders to Kyle Davies and Su Zhu, co-founders of the crypto hedge fund Three Arrows Capital (3AC). The bans, effective as of September 13, prevent them from engaging in regulated activities and holding top executive positions at financial firms in Singapore.
Alleged Securities Law Violations and Regulatory Failures
MAS cited alleged violations of securities laws and regulatory failures as the basis for the prohibition orders. The central bank accused Su and Davies of failing to notify MAS about the appointment of a new business representative at 3AC, providing false information to the regulator, and lacking an appropriate risk management framework.
MAS’s Response to Misconduct
Loo Siew Yee, Assistant Managing Director of Policy, Payments, and Financial Crime at MAS, emphasized the seriousness with which the central bank views the misconduct by Zhu and Davies. She stated that MAS would take action to address senior managers’ misconduct, particularly when it involves a flagrant disregard for regulatory requirements and dereliction of directorial duties.
