Despite its current woes as a liquidated company, the Monetary Authority of Singapore (MAS) has come out openly to accuse Three Arrows Capital (TAC), also popularly called 3AC, of providing it with false information about key aspects of its business.
As a Registered Fund Management Company (RFMC) operating on its shores, the MAS said Three Arrows Capital exceeded the legal limits with respect to its Asset Under Management (AUM) which is pegged at S$250 million. Despite being licensed in Singapore, Three Arrows Capital informed the MAS that it plans to novate its operations to an entity in the British Virgin Islands as of September last year.
With investigations, the MAS discovered that the company did not do as informed as the two companies in the two regions shared the same shareholder in the person of co-founder Su Zhu.
“TAC had represented to MAS that it had novated the management of its fund to an unrelated offshore entity with effect from 1 September 2021. However, this representation was misleading as TAC and the offshore entity shared a common shareholder, Mr. Su Zhu, who is also a director of TAC,” the MAS detailed.
The MAS is known to be very strict before dishing out licenses to crypto entities, a characteristic that has sent Binance and Coinbase Global Inc from dropping out of the race to obtain the regulator’s licenses.
Without the next course of action revealed, the MAS said it will continue to investigate how 3AC has violated all applicable laws that guided its operations in Singapore. Earlier this week, a court in the British Virgin Islands ordered that Three Arrows Capital should be liquidated, a move that shows an end to the company known to be a major backer of a wide range of digital currency protocols including Woo Network, and Mina amongst others.
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