SINGAPORE: Singapore's financial regulators on Thursday accused the Three Arrows Capital hedge fund of exceeding its assets threshold and providing false information.
Three Arrows 3 AC is one of the highest profile investors hit by the sell-off in the digital currency market and is being liquidated according to a source familiar with the matter, according to a source familiar with the matter.
The Monetary Authority of Singapore MAS said on Thursday that it had reprimanded 3 AC and accused them of giving misleading information regarding its relocation to the British Virgin Islands in 2021. It didn't detail any penalties.
Three Arrows Capital did not respond to a request for information outside of business hours on Thursday.
3 AC didn't tell it quickly of changes to directors and their shareholdings, according to MAS.
It said 3 AC exceeded its S $250 million US $179 million assets-under management cap during two periods in 2020 and 2021.
In light of recent developments that call into question the solvency of the fund MAS is assessing if there were more breaches, the regulator said in a statement.
On Jun 15, 3 AC's co-founder tried to address rumours of distress in a tweet, saying the company was fully committed to working this out without going into more detail.
Voyager Digital issued a default notice on Monday by 3 AC after it failed to make payments on a loan of 15,250 bitcoins, about US $290 million and US $350 million worth ofUSDC, a stable coin.
It is set to be the worst quarter of the year that it has ever seen since the beginning of the year, as it has halved its value against the dollar.
It was last seen at US $19,059, a far cry from a November peak of US $69,000.
The turmoil in the market has made stable coins volatile, triggered stock falls and job cuts at exchanges, and seen some lenders including the high-profile Celsius platform freeze withdrawals.