Three Arrows Capital, a beleaguered criptocurrency hedge fund, was warned by Singaporean regulators that the firm provided false information to the city-state about how it handled certain parts of its business.
The Monetary Authority of Singapore said that the firm, which is technically based in Singapore, provided misleading information about its move to the British Virgin Islands last year.
After the collapse of the algorithmic stablecoin TerraUSD and its failure to meet margin calls, the company was forced to liquidate in the British Virgin Islands by a court order this week.
The Singaporean regulator rebuked the firm for failing to inform MAS of changes to its directors or shareholders in a timely manner.
The solvency of the fund was questioned in light of recent developments which call into question the solvency of the fund, and MAS is assessing if there were more breaches, MAS said.
The firm was lambasted earlier this month as an old-fashioned Madoff-style Ponzi scheme by research firm FSInsight and Voyager Digital sent a default notice to Three Arrows Capital on a loan of $665 million.
Sean Farrell, head of digital asset strategy at FSInsight said that they recklessly borrowed from just about every institutional lender in the business.
The liquidation process is being handled by Teneo, a restructuring firm that is currently assessing the value of 3 AC's assets. It plans to launch a website soon to help creditors reclaim their losses.