Singapore MAS Issues 9-Year Ban on Three Arrows Capital CEO Zhu Su & Chairman Kyle Livingston Davies for Providing False Information, Failure to Notify Changes on Directorship & Shareholdings, Exceeding AUM Limit for Registered Fund Management Company, Failure to Notify Appointment of Arthur Cheong as Portfolio Manager & Failure to Implement Risk Management Framework
15th September 2023 | Hong Kong
Singapore central bank Monetary Authority of Singapore (MAS) has issued 9-year ban on Three Arrows Capital CEO Zhu Su and Chairman Kyle Livingston Davies for providing false information, failure to notify changes on directorship & shareholdings, exceeding AUM limit (Assets under Management) for registered fund management company, failure to notify appointment of Arthur Cheong as portfolio manager & failure to implement risk management framework. Singapore MAS: “The Monetary Authority of Singapore (MAS) has issued nine-year prohibition orders (POs) against Mr Zhu Su and Mr Kyle Livingston Davies for contraventions of the Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR). Mr Zhu was the Chief Executive Officer and Director of Three Arrows Capital Pte Ltd (TACPL), while Mr Davies was the Chairman and Director. Under the POs, which took effect from 13 September 2023, Mr Zhu and Mr Davies will be prohibited from performing any regulated activity and from taking part in the management of, acting as a director of or becoming a substantial shareholder, of any capital market services firm under the SFA.” More info below:
” Singapore MAS Issues 9-Year Ban on Three Arrows Capital CEO Zhu Su & Chairman Kyle Livingston Davies for Providing False Information, Failure to Notify Changes on Directorship & Shareholdings, Exceeding AUM Limit for Registered Fund Management Company, Failure to Notify Appointment of Arthur Cheong as Portfolio Manager & Failure to Implement Risk Management Framework “
Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS: “Senior management of fund managers are required to implement robust risk management measures to protect the interest 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.”
Singapore MAS Issues 9-Year Ban on Three Arrows Capital CEO Zhu Su & Chairman Kyle Livingston Davies for Providing False Information
14th September 2023 – The Monetary Authority of Singapore (MAS) has issued nine-year prohibition orders (POs) against Mr Zhu Su and Mr Kyle Livingston Davies for contraventions of the Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR). Mr Zhu was the Chief Executive Officer and Director of Three Arrows Capital Pte Ltd (TACPL), while Mr Davies was the Chairman and Director.
Under the POs, which took effect from 13 September 2023, Mr Zhu and Mr Davies will be prohibited from performing any regulated activity and from taking part in the management of, acting as a director of or becoming a substantial shareholder, of any capital market services firm under the SFA.
Following MAS’ reprimand of TACPL in June 2022 for (i) providing false information to MAS; (ii) failing to notify MAS about changes to Mr Zhu’s and Mr Davies’ directorship and shareholdings; and (iii) exceeding the assets under management threshold allowed for a registered fund management company, MAS has conducted further investigations into TACPL, Mr Zhu and Mr Davies. MAS uncovered the following additional SFA and SFR contraventions committed by TACPL between August 2020 and January 2022:
- Failure to notify MAS of employment of representative: Between August 2020 and September 2021, TACPL employed Mr Cheong Jun Yoong Arthur to be a portfolio manager, to perform fund management activities on behalf of TACPL. In breach of the SFR, TACPL failed to inform MAS within the required timeframe of Mr Cheong’s employment.
- Provision of false information to MAS: In January 2022, TACPL falsely represented to MAS that TACPL had not notified MAS about Mr Cheong’s employment because he did not carry out any regulated activity. In fact, Mr Cheong had performed fund management activity on TACPL’s behalf between August 2020 and September 2021.
- Failure to have in place appropriate risk management framework: TACPL did not have in place a risk management framework to identify, monitor, and address risks associated with the cryptocurrency and digital asset investments under its management.
As directors of TACPL, Mr Zhu and Mr Davies were primarily responsible for ensuring that TACPL complied with regulatory requirements under the SFA and SFR. MAS’ investigation showed that they had failed to discharge their duties and were responsible for TACPL’s breaches.
Liquidators of $3 Billion Crypto Hedge Fund Three Arrows Capital Propose to Recover $1.3 Billion from Co-Founders Singaporean Zhu Su & American Kyle Davies, Took on Larger Leverage after Suffering Losses in 2022 May with the Firm Already Insolvent or Bankrupt
30th June 2023 – Liquidators of $3 billion crypto hedge fund Three Arrows Capital are proposing to recover $1.3 billion directly from co-founders Singaporean Zhu Su & American Kyle Davies, taking on larger leverage in the hedge fund after suffering losses in 2022 May with the firm already insolvent or bankrupt. Three Arrows Capital is founded by 2 former Credit Suisse traders & crypto billionaire Zhu Su (Age 35) and Kyle Davies (Age 35) in 2012 in a kitchen table in their apartment. The fund had over $3 billion worth of cryptocurrencies under management. Teneo, one of the appointed liquidators of Three Arrows Capital, had been appointed to manage the sale & liquidation of Three Arrows Capital remaining holdings (tokens, equity stakes in crypto start-ups). Earlier in 2023 June, Three Arrows Capital 37 NFTs (Non-fungible tokens) bought at $15.5 million had been sold for $10.9 million in a Sotheby’s auction in New York (Announced by Sotheby’s 15/6/23), with Three Arrows Capital founders Singaporean Zhu Su and American Kyle Davies currently living in Bali (Indonesia) and had launched an open exchange for investors to buy & sell crypto bankruptcy claims. In 2021, Three Arrows Capital had acquired the 37 NFTs for $15.5 million. In July 2022, Three Arrows Capital had been ordered into liquidation by a BVI Court (British Virgin Islands), after failing to meet creditors demand for payment including $665 million from Voyager Digital. The former Credit Suisse traders & founders of $3 billion crypto fund Three Arrows Capital, had also been reported to spent $50 million on downpayment for a yacht (Italy) and S$48.8 million on a bungalow in Singapore, according to a document published by the appointed liquidator Teneo. More info below.
Collapsed $3 Billion Crypto Hedge Fund Three Arrows Capital 37 $15.5 Million NFTs Sold for $10.9 Million in Sotheby’s Auction in New York, Founders Singaporean Zhu Su & American Kyle Davies Currently Living in Bali & Launched Open Exchange for Investors to Buy & Sell Crypto Bankruptcy Claims
16th June 2023 – Collapsed $3 billion crypto hedge fund Three Arrows Capital 37 NFTs (Non-fungible tokens) bought at $15.5 million had been sold for $10.9 million in a Sotheby’s auction in New York (Announced by Sotheby’s 15/6/23), with Three Arrows Capital founders Singaporean Zhu Su and American Kyle Davies currently living in Bali (Indonesia) and had launched an open exchange for investors to buy & sell crypto bankruptcy claims. In 2021, Three Arrows Capital had acquired the 37 NFTs for $15.5 million. In July 2022, Three Arrows Capital had been ordered into liquidation by a BVI Court (British Virgin Islands), after failing to meet creditors demand for payment including $665 million from Voyager Digital. Former Credit Suisse traders & founders of $3 billion crypto fund Three Arrows Capital, had also been reported to spent $50 million on downpayment for a yacht (Italy) and S$48.8 million on a bungalow in Singapore, according to a document published by the appointed liquidator Teneo. More info below.
Former Credit Suisse Traders & Founders of $3 Billion Crypto Fund Three Arrows Capital Spent $50 Million on Downpayment for Yacht & S$48.8 Million on Bungalow in Singapore
21st July 2022 – Former Credit Suisse traders & founders of $3 billion crypto fund Three Arrows Capital, had spent $50 million on downpayment for a yacht (Italy) and S$48.8 million on a bungalow in Singapore, according to a document published by the appointed liquidator Teneo. As of April 2022, Three Arrows Capital had $3 billion of Assets under Management and with the latest filing, owes 27 crypto firms $3.5 billion (Owing Genesis: $2.3 billion). Earlier in July 2022, Three Arrows Capital had been ordered into liquidation by a BVI Court (British Virgin Islands), after failing to meet creditors demand for payment including $665 million from Voyager Digital. Three Arrows Capital is founded by 2 former Credit Suisse traders & crypto billionaire Zhu Su (Age 35) and Kyle Davies (Age 35) in 2012 in a kitchen table in their apartment. The fund had over $3 billion worth of cryptocurrencies under management. Teneo, one of the appointed liquidators of Three Arrows Capital, will manage the sale & liquidation of Three Arrows Capital remaining holdings (tokens, equity stakes in crypto start-ups). Separately, the Singapore central bank Monetary Authority of Singapore (MAS) had reprimanded crypto hedge fund Three Arrows Capital for providing false information to MAS (failure to notify change of directorship & shareholders, misleading representation of offshore entity) and exceeding the S$250 million assets under management (AUM) threshold allowed for a registered fund management company (RFMC). Three Arrows Capital had also failed to inform MAS within the required timeline of changes in the directorships and shareholdings of its directors, Mr Su Zhu and Mr Kyle Livingston Davies. Three Arrows Capital had also provided misleading information to MAS that it had replaced and shifted the management of its fund to an unrelated offshore entity with effect from 1 September 2021. This representation was misleading as Three Arrows Capital and the offshore entity shared a common shareholder, Mr Su Zhu.
Three Arrows Capital
Three Arrows Capital Ltd. is a hedge fund established in 2012 and focused on providing superior risk-adjusted returns, founded by Su Zhu and Kyle Davies.
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