On Wednesday, it was reported that the crypto hedge fund Three Arrows Capital (3AC) had been liquidated by a British Virgin Islands court and after the alleged liquidation, the Monetary Authority of Singapore (MAS) blamed 3AC for misleading regulators. In addition, reports claim that liquidators in Singapore are trying to seize the property owned by 3AC co-founder Su Zhu and his wife.
Singapore Monetary Authority Charges 3AC of Misleading Regulators and Exceeding AUM Limits
The troubled crypto hedge fund Three Arrows Capital Ltd., otherwise known as 3AC, seems to be facing problems from regulators in Singapore. Since 2012, 3AC has been a well-known cryptocurrency hedge fund, which was started by two former Credit Suisse merchants – Su Zhu and Kyle Davies. However, after being quite successful, 3AC allegedly invested heavily in Terra’s LUNA after Zhu. insisted that crypto companies “don’t want to be blown up during a supercycle.” One thing 3AC is supposed to have dealt with was an investment of a $ 200 million locked lunar classic (LUNC), which is now worth less than $ 1K.
– Gabriel Haines.eth (@gabrielhaines) June 30, 2022
“There is speculation that the massive losses of [LUNC] made them use more leverage to regain it – Also known as ‘Revenge Trade,’ ”one account explained on June 16th. Two weeks ago, Frank Chaparro of The Block cited sources who said the 3AC cryptocurrency hedge fund had been liquidated for $ 400 million. Reports released the same week indicate that 3AC has been liquidated by Bitmex, Deribit, Bitfinex, and possibly FTX as well. Sources noted two days ago that a British Virgin Islands (BVI) court had also liquidated the hedge fund’s assets, but the sources did not reveal what kind of assets were allegedly seized.
Following the apparent BVI liquidation notice, the Monetary Authority of Singapore (MAS) issued a press release that says 3AC cheated regulators. “The Monetary Authority of Singapore today blamed Three Arrows Capital Pte. Ltd. (3AC) for providing false information to MAS and exceeding the threshold of assets under management (AUM) allowed to a registered fund management company (RFMC),” the press release reveals. . The MAS infringement notice mentions that the regulator is investigating 3AC’s violations “since June 2021”.
3AC is also accused of violating the threshold of MAS assets under management (AUM). “[3AC] exceeded its allowable AUM of S $ 250 million for RFMC between July 2020 and September 2020 and between November 2020 and August 2021, ”detailed the Singaporean regulators. [3AC]MAS assesses whether there were further breaches of [3AC] of the MAS regulations ”, added the MAS officials.
Local Report Claims Liquidators Seek to Seize Su Zhu’s Million-Dollar Bungalows
Moreover, local report from Singapore say “rumors” claimed that liquidators were looking at 3AC’s homes and property located in the country. Edgeprop reporter Cecilia Chow detailed the publication that records show from 2019 to 2021, Su Zhu bought three bungalows in Singapore, which cost him about $ 83.55 million.
The Singapore traits are presumably in Zhu’s name and his wife’s name as well. In December, Zhu and his wife bought 31,863 sq. Km. ft a home called the “Good Class Bungalow (GCB).” Chow’s report notes that the GCB property was placed in trust for one of Zhu’s daughters.
Chow further details that Zhu’s wife owns a $ 28.5 million bungalow in Singapore located near the Botanical Garden at Dalvey Road. The property was acquired in September 2020 and the reporter notes that it is “currently under construction”. Edgeprop’s report claims that 3AC and partners collectively own “five high-end properties.”
Chow further says members of the 3AC team also own a whole set of “high-quality cars and yachts”. The well-known Terra whistle named Fatman shared information about the alleged liquidators in Singapore. Additionally, Fatman claims that source told him that Su Zhu is desperately looking to sell one of the million-dollar homes in Singapore.
“A confirmed source has confirmed that Su Zhu is urgently trying to sell his $ 35 million house in Singapore, currently held in his [daughter’s] trust, “Fatman tweeted.” He is asking for the funds to be transferred to a bank account in Dubai and does not intend to pay creditors with the proceeds from the sale. “
In addition, a post on social media shows how Zhu once claimed that 100,000 ether was “dust” to him. “Today, he is selling 10 USDC, trying to pay off debt after his $ 20. [billion] fund imploded. Markets always humiliate those who are too arrogant, ”explained the individual who posted the post on social media. “Today, he sends everyone [leftover] balance his wallets to CEX so he can get as much money as possible. He recently delivered 10 USDC, 3.98 AAVE ($ 200), 138 SUSHI, 0.1 YFI, 2.5 COMP ($ 75) and other real “dust” to various [centralized] exchanges, ”added the individual.
Meanwhile, Zhu has not tweeted since June 14, 2022. However, Zhu has indeed changed his Twitter profile like it used to say that the co – founder of 3AC was “Investing in BTC, ETHAVAX, MOON, SUN, NEAR, MINE, POINT, [and] KSM. “Today, Zhu’s Twitter profile does not present the aforementioned crypto assets and simply says “bitcoin”, except for its associations with Deribit, Defiance Capital and Starry Night Capital.
What do you think of MAS’s recent press release and the story that says liquidators are trying to seize Su Zhu’s property in Singapore? Let us know what you think about this topic in the comment section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or support of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.