Singapore reprimands 3AC for providing false information

0
127
Advertisement

The Monetary Authority of Singapore (MAS) has reprimanded Three Arrows Capital (3AC), a beleaguered hedge fund, for providing inaccurate information to authorities. In a statement published Thursday, the association said the company violated capital requirements by managing assets in excess of the permitted amount.

When 3AC was registered as a money management company in Singapore in 2013, it was allowed to manage funds for up to 30 investors worth up to $180 million. The fund had earlier told MAS that it was changing its management to the British Virgin Islands.

Three Arrows Capital, a hedge fund founded in Singapore in 2012, has seen heavy losses during the market’s decline in recent weeks, while Bitcoin (BTC) has been hovering around $20,000, compared to previous highs of over $60,000.

According to reports earlier this month, Three Arrows Capital is likely to be insolvent after it suffered at least $400 million in liquidations. For the first time in two years, the company was reported to have failed to meet margin requests from lenders during the severe downturn in the market this year. Crypto lender BlockFi is said to have provided 3AC with bitcoin, but the company was unable to meet margin demand due to a bear market.

On Wednesday, the British Virgin Islands forced a beleaguered hedge fund to liquidate. The decision reportedly came on the same day that Voyager Digital sent a default notice to 3AC for failing to repay a loan of 15,250 Bitcoin and 350 million US dollars (USDC).

RELATED: BVI Court Reportedly Ordered 3AC’s Liquidation

On the other hand, the reports sparked rumors about the bankruptcy of 3AC. Despite this, the company’s creators continued to assure customers that they would do everything in their power to find a fair solution. The company has hired legal and financial advisors to consider options such as an asset sale and a bailout package from another company, according to founder Kyle Davis.

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here