Singapore Regulators Condemn 3AC Amid Insolvency Crisis

The Monetary Authority of Singapore (MAS) “reprimands” Three Arrows Capital (3AC) for providing false information and exceeding the limit for assets under management, according to a statement Thursday. However, the monetary authority did not detail any penalties 3AC would face. 

3AC is a hedge fund established in Singapore in 2012, founded by Su Zhu and Kyle Davies. In 2013 3AC was officially registered as a fund management company in Singapore, allowing them to manage funds for up to 30 investors with up to 180 million. 

3AC saw huge losses during the recent market decline, which has seen virtually all digital assets decline in value and Bitcoin lose more than 66% of its all-time high of roughly $67,000. 

3AC’s troubles began when the Terra Luna network crashed, causing their two cryptocurrencies, UST and LUNA to lose 99% of their value in the course of a week. According to 3AC co-founder Davies, his company was able to rebound from those losses, but the ensuing crypto crash was too much for the hedge fund to manage. 

Then earlier this month, reports began to surface that 3AC may be insolvent after having at least $400 million in liquidations from various crypto lending firms. 

On Wednesday, the struggling hedge fund was forced into liquidation by a British Virgin Islands court. On the same day, Voyager Digital sent a notice of default to 3AC for failing to repay a loan of 15,250 Bitcoins and 350 million USD Coin (USDC). 

Author: Tyler Irvin

Related Articles