Singapore Regulator Rebukes 3AC

The regulatory authority in Singapore has accused Three Arrows Capital (3AC) of providing false information to its clients and crossing its asset threshold, which is another problem for the embattled crypto hedge fund.

MAS reprimands 3AC

One of the highest-profile companies that have taken a beating in the sell-off in the crypto market is Three Arrows Capital. On Wednesday, reports indicated that the company had entered the liquidation process, as it was unable to meet its margin calls and had defaulted on a loan from Voyagers Digital.

The Monetary Authority of Singapore (MAS) stated on Thursday that it had ‘reprimanded’ the crypto hedge fund for providing false information to the public. This information was in relation to its relocation back in 2021 to the British Virgin Islands. However, the regulatory authority did not make any mention of penalties. Three Arrows Capital has not yet commented on the actions of the regulatory authority.

Accusations

The accusations that the Monetary Authority of Singapore (MAS) leveled against 3AC included the hedge fund’s failure to inform the regulator about the changes made to directors of the company and also their shareholdings. It further asserted that the hedge fund had exceeded the assets under the management cap of S$250 million during two periods last year and in 2020 as well.

The regulator added that due to the recent developments that had put the solvency of the company into question, they had decided to take a closer look in order to determine if there had been any other breaches.

3AC’s problems

There had been rumors flying about trouble for the hedge fund in June and on 15th of the month, the co-founder of the company had decided to address them in a tweet. He had stated that the company was fully dedicated to solving its issues, but had not shed light on the details.

On Monday, a default notice was issued by Voyager Digital after 3AC did not make its loan payment that had become due. The crypto broker disclosed that the loan was made in USDC and bitcoins. In the case of the former stablecoin, 3AC owed $350 million, while it owed 15,250 bitcoins, which were valued at $290 million at the time of writing.

Bitcoin has seen its value come down by half in the current quarter against the US dollar, which is the worst performance the cryptocurrency has had in its entire history. The last price at which Bitcoin was seen brought it to $18,000, which is not even remotely close to the all-time high that it had reached in November last year of $69,000.

The crypto bear market has led to volatility in some ‘stablecoins’ and this has resulted in heavy shedding in stocks. Moreover, a number of crypto exchanges and companies have decided to lay off their staff, as their profits and revenues are falling with the trading volumes. Some lending companies, such as Celsius Network, have paused their withdrawals and rumors indicate that it is also preparing for liquidation.