Singapore Bans Founders of Crypto Hedge Fund Three Arrows Capital

Regulators impose nine-year ban on Zhu Su and Kyle Davis

SINGAPORE — Singapore announced on Thursday that it has banned the founders of collapsed crypto hedge fund Three Arrows Capital, Zhu Su and Kyle Davis, from participating in regulated capital market activities for nine years.

Bans on assuming director positions and becoming substantial shareholders

The country’s financial regulator and central bank, the Monetary Authority of Singapore, said they will not be allowed to assume director positions or become substantial shareholders of capital markets companies in the city. The bans came into effect on Wednesday.

Impact on the crypto hedge fund industry

The ban on Zhu Su and Kyle Davis is a significant move by Singapore’s regulators to protect investors and maintain the integrity of the capital market. It sends a strong message to the crypto hedge fund industry that misconduct will not be tolerated.

Reasons for the ban

• Zhu Su and Kyle Davis were found to have engaged in fraudulent activities, leading to the collapse of Three Arrows Capital.
• They violated regulations and failed to meet their fiduciary duties to investors.
• Their actions resulted in significant financial losses for investors.

Consequences for the founders

The ban prevents Zhu Su and Kyle Davis from participating in any capital market activities in Singapore for the next nine years. This includes assuming director positions or becoming substantial shareholders of any capital markets companies.

Impact on the reputation of Three Arrows Capital

The collapse of Three Arrows Capital and the subsequent ban on its founders will likely have a negative impact on the reputation of the hedge fund. Investors may lose confidence in the fund and choose to withdraw their investments.