(June 30): Three Arrows Capital, the crypto hedge fund ordered to liquidate after failing to repay creditors, was reprimanded by the Monetary Authority of Singapore for providing false information and exceeding the maximum amount of money it was allowed to manage. 

The central bank said in a statement on Thursday that Three Arrows had obtained a local registration in 2013 that allowed it to manage up to S$250 million (US$180 million). Three Arrows breached the limit on assets under management from July 2020 to September 2020, and from November 2020 to August 2021, MAS said.  

A British Virgin Islands court this week ordered Three Arrows into liquidation, after the fund failed to repay borrowings it amassed to fuel investments in everything from Bitcoin to the ill-fated Luna token. Three Arrows became the latest casualty of a selloff that’s wiped about US$2 trillion from the value of digital assets since late last year. 

Three Arrows also told MAS that it had “novated” management of its fund to an “unrelated offshore entity” in the BVI effective Sept. 1, 2021. That was misleading as Three Arrows co-founder Su Zhu was a shareholder of both entities and is a director of Three Arrows, according to the statement. 

“In light of recent developments which call into question the solvency of the fund managed by TAC, MAS is assessing if there were further breaches by TAC of MAS’ regulations,” the regulator said.

Zhu and Solitaire, a law firm representing Three Arrows, didn’t immediately respond to messages seeking comment.