Singapore’s financial regulator has accused Three Arrows Capital of falsifying information after the digital assets hedge fund became the latest Asia-Pacific victim of the crypto crash.
Three Arrows is one of the highest profile investors hit by the sharp sell-off in crypto markets and is being liquidated.
On Thursday the Monetary Authority of Singapore (MAS) said it had “reprimanded” Three Arrows and accused it of providing misleading information concerning its relocation to the British Virgin Islands in 2021.
Three Arrows did not immediately respond to enquiries sent outside business hours on Thursday.
MAS said Three Arrows failed to inform it quickly enough of changes to directors and their shareholdings.
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It also said Three Arrows exceeded its S$250 million ($179 million) assets-under-management cap during two periods in 2020 and 2021.
“In light of recent developments which call into question the solvency of the fund … MAS is assessing if there were further breaches,” the regulator said in a statement.
On June 15, a Three Arrows co-founder sought to address rumours of distress in a tweet, saying the company was “fully committed to working this out”, without going into further detail.
Crypto broker Voyager Digital issued Three Arrows with a default notice on Monday after it failed to make payments on a loan of 15,250 bitcoin (about $290 million) and $350 million worth of USD Coin, a stablecoin.
- Reuters, with additional editing by George Russell