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MAS issues prohibition orders against founders of crypto firm Three Arrows

The Monetary Authority of Singapore has issued nine-year prohibition orders against Zhu Su and Kyle Livingston Davies.

The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore.
MAS issues prohibition orders against Three Arrows founders. (PHOTO: REUTERS/Edgar Su/File Photo) (REUTERS)

SINGAPORE – The Monetary Authority of Singapore (MAS) on Thursday (14 September) issued nine-year prohibition orders (POs) against the founders of bankrupt cryptocurrency firm Three Arrows Capital, Zhu Su and Kyle Livingston Davies.

In a statement on Thursday, MAS said the duo had contravened the Securities and Futures Act (SFA) along with Securities and Futures (Licensing and Conduct of Business) Regulation (SFR).

Zhu was the Chief Executive Officer and Director of Three Arrows Capital Pte Ltd, while Davies was its Chairman and Director.

The POs are effective from 13 September, MAS said.

Zhu and Davies will be "prohibited from performing any regulated activity and from taking part in the management of, acting as a director of or becoming a substantial shareholder, of any capital market services firm under the SFA".


The POs followed MAS' reprimand of Three Arrows for providing false information to MAS, failing to notify MAS about changes to Zhu's and Davies' directorship and shareholdings, and exceeding the assets under management threshold allowed for a registered fund management company.

MAS added that it has conducted further investigations into Three Arrows, Zhu and Davies.

MAS said it uncovered the following additional SFA and SFR contraventions committed by Three Arrows between August 2020 and January 2022:

  • Failure to notify MAS of employment of representative: Between August 2020 and September 2021, Three Arrows employed Cheong Jun Yoong Arthur to be a portfolio manager, to perform fund management activities on behalf of Three Arrows. In breach of the SFR, Three Arrows failed to inform MAS within the required timeframe of Cheong's employment.

  • Provision of false information to MAS: In January 2022, Three Arrows falsely represented to MAS that Three Arrows had not notified MAS about Cheong's employment because he did not carry out any regulated activity. In fact, Cheong had performed fund management activity on Three Arrow's behalf between August 2020 and September 2021.

  • Failure to have in place appropriate risk management framework: Three Arrows did not have in place a risk management framework to identify, monitor, and address risks associated with the cryptocurrency and digital asset investments under its management.

MAS said that as directors of Three Arrows, Zhu and Davies were primarily responsible for ensuring that the company has complied with regulatory requirements under the SFA and SFR. Its investigation showed that they had failed to discharge their duties and were responsible for Three Arrows' breaches.

"Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors," Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said.

"MAS takes a serious view of Mr Zhu's and Mr Davies' flagrant disregard of MAS' regulatory requirements and dereliction of their directors' duties. MAS will take action to weed out senior managers who commit such misconduct," she added.

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