The Monetary Authority of Singapore (MAS) has taken action against executives from Three Arrows Capital (3AC), Kyle Livingston Davies and Zhu Su, by imposing a nine-year ban due to regulatory violations.
This ban, known as a prohibition order (PO), became effective on September 13, 2023. It’s important to note that Zhu Su and Kyle Davies were the founders of the now-bankrupt crypto hedge fund, Three Arrows Capital. Within the company, Zhu Su served as the CEO and director, while Kyle Davies held the positions of chairman and director.
MAS Restricts Zhu and Davies
According to the statement, Zhu Su and Kyle Davies are now banned from engaging in “regulated activity” and are prohibited from managing, holding director positions in, or acquiring significant shares in any capital market services firm under the Securities and Futures Act (SFA).
Following MAS’s reprimand of Three Arrows Capital in June 2022 for providing false information to MAS, failing to report changes in Zhu’s and Davies’ directorship and shareholdings, and exceeding the allowable assets under management for a registered fund management firm, MAS initiated further investigations into the firm, Zhu, and Davies.
The regulator asserts that Three Arrows Capital did not inform the Monetary Authority of Singapore (MAS) about appointing a new fund manager, provided false information to MAS by claiming that this manager did not engage in regulated activities, and failed to establish an appropriate risk management framework.
Loo Siew Yee, Assistant Managing Director of Policy, Payments & Financial Crime, stressed the importance of senior management in fund management implementing strong risk management measures to protect investors.
She also expressed serious concern on MAS’s part regarding Zhu’s and Davies’ disregard for MAS’s regulatory requirements and their failure to fulfill their directorial responsibilities. MAS is committed to taking action against senior managers involved in such misconduct.
Effect on OPNX Exchange from MAS Actions?
The cryptocurrency exchange known as OPNX, which is registered in Seychelles, was co-founded by Kyle Davies and Zhu Su, who are also executives at 3AC. Following the prohibition order issued by Singapore authorities against these individuals, some are wondering if it will have any impact on the exchange.
It’s important to note that the ban prevents them from participating in financial markets within Singapore, so it may not directly affect the OPNX exchange.
However, it’s worth mentioning that on August 16, OPNX and its founders, including Kyle Davies and Su Zhu, were fined approximately $2.8 million by Dubai’s Virtual Assets Regulatory Authority (VARA). These fines primarily resulted from violations related to marketing and advertising standards established by the regulator.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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