Singapore’s financial regulator has accused troubled crypto hedge fund Three Arrows Capital of exceeding its asset threshold and providing false information.
Three Arrows Capital (3AC), one of the most prominent investors hit by a sharp sell-off in the crypto market, is in liquidation, Reuters reported on Wednesday, citing people familiar with the matter.
On Thursday, the Monetary Authority of Singapore (MAS) said it had “denounced” 3AC, accusing it of providing misleading information about a relocation to the British Virgin Islands in 2021. It did not detail any penalties.
Three Arrows Capital did not immediately respond to inquiries sent outside business hours on Thursday.
MAS said 3AC failed to notify its directors and their shareholdings in a timely manner.
It also said that 3AC exceeded its asset management cap of $250 million ($179 million or nearly 14 billion rupees) in two periods, 2020 and 2021.
“Given recent developments raising questions about the fund’s solvency…MAS is assessing whether there have been further breaches,” the regulator said in a statement.
On June 15, 3AC’s co-founders attempted to address rumors of the troubled troubles in a tweet, saying the company was “fully committed to solving this problem,” without providing further details.
Crypto broker Voyager Digital issued 3AC on Monday after failing to repay loans of 15,250 BTC (about $290 million or nearly Rs 25 billion) and USDC worth $350 million (nearly Rs 28 billion). notice of default. stablecoins.
Bitcoin has halved in value against the U.S. dollar this quarter, which would be the worst on record.
It was last seen at $19,059 (nearly Rs 1.5 lakh), a far cry from the November peak of $69,000 (nearly Rs 5.4 lakh).
The turmoil in the crypto market has destabilized some so-called “stablecoins,” leading to sharp declines in stocks and layoffs on crypto exchanges and seeing some lenders, including the high-profile Celsius platform, freeze withdrawals.
© Thomson Reuters 2022