February 27, 2024

The Central Bank of Singapore condemned Three Arrows Capital for violating regulations

The Central Bank of Singapore condemned Three Arrows Capital for violating regulations

The Monetary Authority of Singapore (MAS) has reprimanded Three Arrows Capital (3AC)for providing a falseinformation and exceeding the allowed threshold of assets under management.

The firm violated the Securities and Futures Act of 2001 and the Securities and Futures Rules. MAS has been studying the situation since June 2021.

The press release states that the management company license obtained by 3AC in August 2013 meant restrictions in the form of working with 30 qualified investors with assets up to 250 million SGD.

In fact, 3AC has exceeded this threshold twice, from July to September 2020 and from November 2020 to August 2021.

On September 1, 2021, 3AC handed over controlthe sole fund of an offshore company registered in the British Virgin Islands. In February 2022, she resumed managing part of the fund's assets. On April 29, 3AC notified MAS of its intention to terminate the corporate entity in Singapore effective May 6, 2022.

The company did not disclose that the offshore structure and 3AC had a common shareholder. The firm also failed to notify MAS within the required time frame of the changes in management and shareholder structure.

Recall that recently the court of the British Virgin Islands ruled to liquidate the hedge fund Three Arrows Capital.

How Celsius, 3AC and stETH problems will affect the price of Ethereum and the cryptocurrency market

In June, the Central Bank of Singapore threatened to crack down on irregularities in the cryptocurrency industry with “relentless toughness.”

Earlier, the Dubai regulator announced that 3AC did not have a license to operate in the emirate.

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