The founders, Su Zhu and Kyle Davies, are prohibited from participating, taking part in the management, or becoming a substantial shareholder of any financial services firm.
Singapore's financial regulator, the Monetary Authority of Singapore (MAS), has issued a nine-year prohibition order against the founders of Three Arrows Capital, Su Zhu and Kyle Davies.
The prohibition order comes after the regulator launched an investigation into Three Arrows Capital after it was reprimanded in June 2022 for providing false information to MAS, failing to notify the authorities of changes to the firm's directors and shareholders, and exceeding the asset under management limit.
Three Arrows failed to notify MAS of the employment of a new fund manager, fraudulently stated to MAS that this manager was not conducting regulated activities, and failed to have an acceptable risk management framework in place, according to the regulator.
MAS Assistant Managing Director of Policy, Payments & Financial Crime, Loo Siew Yee, said in a release:
"MAS takes a serious view of Mr. Zhu's and Mr. Davies' flagrant disregard of MAS' regulatory requirements and dereliction of their directors' duties. MAS will take action to weed out senior managers who commit such misconduct."
The founders are prohibited from participating, taking part in the management, or becoming a substantial shareholder of any financial services firm.
In August, Zhu and Davies' latest venture, Seychelles-registered crypto bankruptcy claims exchange OPNX, was fined nearly $2.7 million by Dubai's Virtual Assets Regulatory Authority (VARA) for a Market Offense issued by the regulator. The fine remains unpaid as of September 14.
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