According to MAS, Three Arrows Capital (3AC) was in possession of more assets than were allowed and had given misleading information.
Three Arrows Capital (3AC), a litigated hedge fund, has received criticism from the Monetary Authority of Singapore (MAS) for giving the authorities false information. The MAS claimed in a statement released on Thursday that the company had violated capital requirements by managing more assets than was allowed.
3AC was granted permission to handle money for up to 30 investors totaling up to $180 million when it registered as a fund management firm in Singapore in 2013. The fund already alerted MAS that it was switching to British Virgin Islands management.
Hedge firm Three Arrows Capital, founded in Singapore in 2012, has suffered significant losses as a result of the market downturn that has seen Bitcoin (BTC) hover around $20,000 recently, down from recent highs of over $60,000.
Three Arrows Capital may have been bankrupt after having at least $400 million in liquidations, according to news from earlier this month. For the first time in two years, the company apparently wasn’t able to meet its lenders’ demands for margin during a severe market downturn this year. BlockFi, a cryptocurrency loan organization, is alleged to have given 3AC Bitcoin (BTC), but due to the bear market, the business was unable to meet a margin call.
The British Virgin Islands forced the troubled hedge fund into liquidation on Wednesday. According to reports, the choice was made on the same day that 3AC received a notice of default from Voyager Digital for missing payments on a loan for 350 million USD Coin (USDC) and 15,250 Bitcoin.
The reports, however, led to rumors regarding 3AC’s bankruptcy. Despite this, the company’s founders kept promising clients that they would make every effort to come to a fair conclusion. According to founder Kyle Davies, the company hired legal and financial advisers to research options like asset sales and a rescue package from another company.
