On Wednesday, it was reported that the crypto hedge fund Three Arrows Capital (3AC) was liquidated by a British Virgin Islands court and following the alleged liquidation, the Monetary Authority of Singapore (MAS) has reprimanded 3AC for misleading regulators. Furthermore, reports claim that liquidators in Singapore are attempting to seize the properties owned by 3AC co-founder Su Zhu and his wife.
Monetary Authority of Singapore Accuses 3AC of Misleading Regulators and Exceeding AUM limits
The troubled crypto hedge fund Three Arrows Capital Ltd., otherwise known as 3AC, seems to be facing issues from regulators in Singapore. Since 2012, 3AC was a well known crypto hedge fund that was started by two former Credit Suisse traders — Su Zhu and Kyle Davies. However, after being quite successful, 3AC allegedly invested heavily into Terra’s LUNA after Zhu insisted that crypto companies “don’t want to be blown out during a supercycle.” It is assumed that one issue 3AC dealt with was an investment of $200 million locked luna classic (LUNC) which is now worth less than $1K.
“You don’t want to be blown out during a supercycle”@zhusu on @UpOnlyTV with @cobie and @ledgerstatus pic.twitter.com/fYqCXukGNN
— Gabriel Haines.eth (@gabrielhaines) June 30, 2022
“There is speculation that the massive losses of [LUNC] caused them to use more leverage to earn it back — Also known as ‘Revenge trading,’” one account explained on June 16. Two weeks ago, The Block’s Frank Chaparro cited sources that said the crypto hedge fund 3AC was liquidated for $400 million. Reports published the same week indicate that 3AC was liquidated by Bitmex, Deribit, Bitfinex, and possibly FTX as well. Sources noted two days ago, that a British Virgin Islands (BVI) court liquidated the hedge fund’s assets as well, but the sources did not disclose what type of assets were allegedly seized.
Following the ostensible BVI liquidation notice, the Monetary Authority of Singapore (MAS) published a press release that says 3AC misled regulators. “The Monetary Authority of Singapore today reprimanded Three Arrows Capital Pte. Ltd. (3AC) for providing false information to MAS and exceeding the assets under management (AUM) threshold allowed for a registered fund management company (RFMC),” the press release reveals. The MAS violation notice mentions that the regulator has been investigating 3AC’s contraventions “since June 2021.”
3AC is also accused of breaching the MAS assets under management (AUM) threshold. “[3AC] exceeded its allowable AUM of S$250 million for a RFMC between July 2020 and September 2020 and between November 2020 and August 2021,” the Singapore regulators detailed. “In light of recent developments which call into question the solvency of the fund managed by [3AC], MAS is assessing if there were further breaches by [3AC] of MAS’ regulations,” the MAS officials added.
Local Report Claims Liquidators Look to Seize Su Zhu’s Million-Dollar Bungalows
Moreover, a local report from Singapore say “rumors” have claimed that liquidators have been eyeing 3AC’s homes and property located in the country. The publication Edgeprop’s reporter Cecilia Chow detailed that records show from 2019 to 2021, Su Zhu purchased three bungalows in Singapore that cost him around $83.55 million.
The Singapore properties are allegedly in Zhu’s name and his wife’s name as well. In December, Zhu and his wife purchased a 31,863 sq ft home called the “Good Class Bungalow (GCB).” Chow’s report notes that the GCB property was put into a trust for one of Zhu’s daughters.
Chow further details that Zhu’s wife owns a $28.5 million bungalow in Singapore located near the Botanic Gardens at Dalvey Road. The property was acquired in September 2020 and the reporter notes that it is “currently under construction.” The Edgeprop report claims that 3AC and associates collectively own “five high-end properties.”
Chow further says that members of the 3AC team also own an entire fleet of “high-end cars and a yacht.” The well known Terra whistleblower named Fatman has been sharing information about the alleged liquidators in Singapore. Additionally, Fatman claims that a source told him that Su Zhu is desperately looking to sell one of the million-dollar homes in Singapore.
“A verified source has confirmed that Su Zhu is urgently trying to sell his $35m house in Singapore, currently held in his [daughter’s] trust,” Fatman tweeted. “He is requesting the funds to be transferred to a bank account in Dubai and has no intention of paying creditors with the proceeds from the sale.”
Furthermore, a post on social media shows how Zhu once claimed 100,000 ether was “dust” to him. “Today, he is selling 10 USDC, trying to pay off debt after his $20 [billion] fund imploded. Markets always humble those too arrogant,” the individual who published the social media post explained. “Today, he is sending all the [leftover] balance from his wallets to CEX so that he can get as much money as possible. He just transferred 10 USDC, 3.98 AAVE ($200), 138 SUSHI, 0.1 YFI, 2.5 COMP ($75) and other actual ‘dust’ to various [centralized] exchanges,” the individual added.
Meanwhile, Zhu has not tweeted since June 14, 2022. However, Zhu did change his profile on Twitter as it used to say that the co-founder of 3AC was “Investing in BTC, ETH, AVAX, LUNA, SOL, NEAR, MINA, DOT, [and] KSM.” Today, Zhu’s Twitter profile does not feature the aforementioned crypto assets and simply says “bitcoin,” in addition to his associations with Deribit, Defiance Capital, and Starry Night Capital.
What do you think about the recent MAS press release and the story that says liquidators are attempting to seize Su Zhu’s properties in Singapore? Let us know what you think about this subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
