MAS Unravels More Violations Post Reprimand
Following an initial reprimand in June 2022, during which the MAS accused the 3AC founders of providing false information and exceeding the assets under management threshold, further investigations have unearthed additional breaches. These violations, occurring between August 2020 and January 2022, include failing to notify the regulator of the employment of a new portfolio manager within the stipulated timeframe.
3AC Founders’ Failing Risk Management Measures Called Out
Loo Siew Yee, MAS’ assistant managing director, made a damning statement regarding the failures of Su and Davies to implement an effective risk management framework. These shortcomings, coupled with the duo’s false representation of the new manager’s activities and their other transgressions, have led to the MAS’ strict action.
Founders Continue with Crypto Activities Amidst Troubles
In February 2023, despite the ongoing scrutiny and the bankruptcy of 3AC, Zhu and Davies launched a new crypto platform, Open Exchange (OPNX), in Seychelles. This defiant move has not been without repercussions as the Virtual Assets Regulatory Authority (VARA) in Dubai imposed a fine of $2.7 million against OPNX along with fines against Zhu, Davies, and others involved.
Who has been banned by the Monetary Authority of Singapore (MAS)?
The MAS has banned Zhu Su and Kyle Davies, founders of the now-bankrupt crypto hedge fund 3AC, from engaging in regulated business activities for nine years.
What violations led to the ban?
The ban followed a series of violations including providing false information, failing to disclose the employment of key personnel, and having a deficient risk management framework.
What have the founders been up to following their ban and the bankruptcy of 3AC?
Despite their troubles, Zhu and Davies have launched a new crypto platform, Open Exchange (OPNX), which has recently been fined $2.7 million by the Dubai’s Virtual Assets Regulatory Authority (VARA).