A regulatory agency in Singapore is hitting the founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) with a nine-year ban a month after they got slapped with a huge fine from authorities in Dubai. In a new announcement, the Monetary Authority of Singapore (MAS) says that 3AC founders Kyle Davies and Zhu Su […]
The post 3AC Founders Kyle Davies and Zhu Su Slapped With Nine-Year Ban by Singapore Regulator a Month After Dubai Fines appeared first on The Daily Hodl.
Three Arrows Capital founders Kyle Davies and Zhu Su are barred from regulated activities or acting as top execs at any financial firm in Singapore.
Singapore's central bank has issued nine-year prohibition orders to Kyle Davies and Zhu Su over alleged violations of the country's securities laws at their co-founded crypto hedge fund Three Arrows Capital (3AC).
In a Sept. 14 statement, the Monetary Authority of Singapore (MAS) said Su and Davies will be banned from regulated activities during the prohibition period that started Sept. 13.
They also won't be permitted to manage, act as a director, or be a substantial shareholder of any capital market services business in Singapore.
In its decision to bar the pair, MAS said it found further securities law violations when it undertook further investigations into the bankrupt 3AC and its co-founders.
MAS claimed Su and Davies failed to notify the central bank that 3AC employed a new business representative, gave false information to the regulator, and failed to have an appropriate risk management framework in place.
Related: Huobi’s new name, HTX, raises community eyebrows
Loo Siew Yee, MAS' assistant managing director of policy, payments and financial crime said “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” she added.
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The co-founder of bankrupt crypto hedge fund Three Arrows Capital (3AC) has launched a flurry of accusations despite facing legal scrutiny of his own. Zhu Su claims that the Digital Currency Group (DCG) “conspired with FTX to attack LUNA,” the native algorithmic stablecoin of Terra, that collapsed in May 2022. “They took substantial losses in the […]
The post Three Arrows Capital Co-Founder Su Zhu Says Digital Currency Group and FTX Conspired To Attack Terra (LUNA) appeared first on The Daily Hodl.
The founders of the now-defunct crypto hedge fund Three Arrows Capital (3AC) are speaking out after months of silence in the wake of the firm’s bankruptcy. 3AC founders Kyle Davies and Zhu Su have both taken to Twitter to speak on the recent collapse of crypto exchange FTX and its trading arm Alameda Research, saying […]
The post Three Arrows Capital Breaks Silence, Says That FTX and Alameda Hunted Their Positions During LUNA Collapse appeared first on The Daily Hodl.
The whereabouts of Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies are currently unknown, according to creditors trying to seek payment on large unpaid loans. According to court documents, lawyers representing the creditors say two hedge fund bosses have yet to cooperate in any significant way. “The physical whereabouts of the Debtor’s founders, […]
The post Crypto Hedge Fund Bosses’ Whereabouts Are Unknown, Say Creditors Seeking Billions of Dollars in Debt appeared first on The Daily Hodl.
“We are in the process of communicating with relevant parties and fully committed to working this out” Su Zhu stated.
Su Zhu, the co-founder of Singapore-based crypto venture capital firm Three Arrows Capital (3AC) has put out a cryptic statement on Twitter in response to swirling rumors that the company is battling against insolvency.
Online chatter about 3AC being unable to meet a margin call began after 3AC started moving assets around this week to top up funds on DeFi platforms such as AAVE to avoid potential liquidations amid the tanking price of Ether (ETH) this week. There are unconfirmed reports that 3AC faced liquidations totaling hundreds of millions from multiple positions.
DeFi-banking platform Celsius has also been frantically shoring up positions to avoid liquidations too. Celsius funds account for a significant proportion of the Total Value Locked in various platforms in the DeFi ecosystem, while 3AC is a major borrower. The collapse of either or both would have significant implications for the entire space.
This wallet (tagged as 3AC on Nansen) has been aggressively paying back AAVE debt against its 223k ETH / $264mm position to avoid liquidation. With $198mm in borrowings against it, @ a 85% liq threshold, a -11% move in ETH to $1,042 liqudates ithttps://t.co/y7yJJ0NlMc pic.twitter.com/2S55Rzl9Xc
— Onchain Wizard (@OnChainWizard) June 15, 2022
In a short and sweet Twitter post from earlier today, Zhu broke his silence after around three days of inaction on social media and suggested that the company is working through its issues:
“We are in the process of communicating with relevant parties and fully committed to working this out.”
Messari Crypto’s Ryan Selkis highlighted speculation that 3AC started to reposition its balance sheet after being on the “wrong side of two synthetic trades — with size — in GBTC and stETH."
Wu Blockchain also reported that the firm lost around $31.37 million through trading on Bitfinex during May.
According to Bitfinex Leaderboard, Three Arrows lost $31,370,031.97 in Bitfinex trading in May, ranking second. The account lost $37,278,593.9 on Bitfinex this year. In June, the account was not recorded. But losses on a single exchange may just be hedge. https://t.co/Xr8cYjLHII
— Wu Blockchain (@WuBlockchain) June 15, 2022
The rumors ramped up after Zhu removed all mention of investments in ETH, AVAX, LUNA, SOL, NEAR, MINA, DeFi and NFTs from his Twitter bio, keeping only a mention of Bitcoin (BTC). Others have raised questions about Su deleting his Instagram, and asked why both he and co-founder Kyle Davies were inactive on Twitter for three days.
3AC in trouble? rumors swirling
— moon (@MoonOverlord) June 14, 2022
- Kyle and Zhu havent tweeted or liked anything in days
- Zhu took every coin and # tag out of his bio
- Zhu deleted his instagram
- an hour ago they dumped 30k stETH and reduced all AAVE positions
A related issue is 3AC’s previous exposure to the Terra eco-system via the LUNA token (now LUNAC) which experienced a multi-billion market crash in late May. The platform exchanged roughly $500 million worth of Bitcoin (BTC) with the Luna Foundation Guard for the equivalent fiat amount in LUNA just weeks before Terra imploded.
Related: Binance.US faces class-action lawsuit over LUNA and UST sale
Other prominent figures in the space such as the former head of crypto Cathie Wood's Ark Invest, Chris Burniske, also pointed to rumors of 3AC being the next firm to crumble after Terra and Celsius. Alameda Research was also loosely referenced via a meme.
Well 1 of these 3 is down, and 1 I doubt will fall, but the other is something to watch https://t.co/OgBqd7GqHa
— Chris Burniske (@cburniske) June 14, 2022
Only a few weeks ago, CEO Zhu Su was blasting ETH on Twitter for high gas fees and accessibility issues. Now, his company is buying the dip.
Crypto hedge fund Three Arrows Capital (3AC) has bought more than half a billion dollars worth of Ether in the time since CEO Zhu Su publicly slammed the cryptocurrency on Twitter. Do the purchases mean he's changed his mind, or was he just taking advantage of a market crash to buy the dip?
In an anti-ETH tirade between Nov. 20 and Nov. 22, Zhu tweeted about why he had “abandoned Ethereum despite supporting it in the past.” The thread came in response to a tweet from Synthetix founder Kain Warwick, who’d called out people who have “sold out in pursuit of profit maximization.” During the tweet storm Zhu claimed that Ethereum culture “suffers massively from the Founders’ Dilemma” and that “everyone is already far too rich to remember what they originally set out to do.”
However, after attracting wide attention, he made a U-turn saying he wanted to "soften" his original stance and that “I love Ethereum and what it stands for.”
In the 17 days or so since the threads, approximately 156,400 thousand Ether (ETH) or $676.37 million has been transferred to a wallet that blockchain analytics firm Nansen has associated with 3AC.
Almost all the funds entering the wallet during this period were transferred from Binance, FTX exchange or Coinbase.
Look I couldn't let you guys jerk off watching the burn without me
— Zhu Su (@zhusu) December 7, 2021
Eth L1 still unusable for newcomers, show it to your grandma if you don't believe me
I'll still bid it hard on any panic dump like this weekend obv
100k eth is dust fwiw, more coming
Zhu confirmed the transactions earlier today in response to a tweet from Chinese blogger Wu Blockchain, saying that although Ethereum layer-one is still “unusable for newcomers,” he’d still “bid hard on any panic dump like this weekend.”
The wallet shows 3AC made the majority of its purchases during the weekend price crash.
When the anti-ETH tweets emerged, many Twitter users believed he was trying to pump rival project Avalanche (AVAX), which 3AC has invested in. In response to a user asking if the ETH purchases meant he'd dumped his AVAX holdings for ETH, he said that he has “never sold AVAX” and simply “bought this ETH from whoever was financially illiterate enough to sell this weekend.”
In early November, Three Arrows Capital was announced as an investor in Blizzard, a fund to promote the development of AVAX. Following Zhu’s initial tweets, AVAX pushed out Dogecoin (DOGE) from its spot as the 10th-largest crypto by market capitalization. Zhu tweeted a graph of AVAX’s growth captioned “top 10” in the hours before his U-turn.
Yes I have abandoned Ethereum despite supporting it in the past.
— Zhu Su (@zhusu) November 21, 2021
Yes Ethereum has abandoned its users despite supporting them in the past.
The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.
Related: Three Arrows Capital executives launch NFT fund
At 23:34 UTC today, 93,791.894 Ether was moved from the wallet belonging to 3AC to an address that appears to belong to a major trader. Smaller amounts have been moved to other addresses, including 500 Ether moved to an apparent NFT investment wallet shortly.
The Ethereum scaling wars are raging on social media due to the problems that this chain is facing, with fees on layer one (L1) at very high levels. Zhu Su, CEO of Three Arrows Capital, a notable crypto VC company, announced he withdrew his support from the project, criticizing the state in which the chain […]