The Monetary Authority of Singapore (MAS) has issued a prohibition order banning Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies, according to a Sept. 14 notice.

The financial regulator banned the two individuals for nine years because they violated the country’s Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR).

According to the release, the prohibition order went into effect on Sept. 13, and it prohibits them from being involved in any management, directorship, or being a substantial shareholder in any capital services firm.

The MAS provided further details regarding its investigation into the now-bankrupt cryptocurrency hedge fund, Three Arrows Capital. According to MAS, the fund neglected to inform the regulatory body about the appointment of Cheong Jun Yoong Arthur as its portfolio manager.

Furthermore, when questioned, MAS revealed that Three Arrows Capital misrepresented Cheong’s employment status. The company claimed they did not notify MAS because he had not engaged in any regulated activities despite his involvement in fund management for several months prior.

In addition to these findings, MAS has pointed out that Three Arrows Capital lacked an adequate risk management framework for its managed assets. These issues have been attributed to the failures of Zhu and Davies in fulfilling their duties.

“Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors. MAS takes a serious view of Mr Zhu’s and Mr Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties,” the release said.

Last year, 3AC was one of the earliest crypto companies to declare bankruptcy. The firm, which was one of the biggest in the industry before its collapse, played a role in the insolvency of several other digital asset companies.

The post Zhu Su and Kyle Davies banned by Singapore regulator for 9 yrs over securities breaches appeared first on CryptoSlate.

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