Singapore’s central bank slugs Three Arrows founders with 9-year ban

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.

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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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