The Monetary Authority of Singapore (MAS) has reprimanded Three Arrows Capital (3AC), a controversial hedge fund, for providing inaccurate information to the authorities. In a statement published on Thursday, the MAS said the company breached capital requirements by having assets under management above the permitted amount.
When 3AC registered as a fund management company in Singapore in 2013, it was allowed to manage funds for up to 30 investors worth up to $180 million. The fund had previously reported to the MAS that it was going to change its management to the British Virgin Islands.
Three Arrows Capital, a hedge fund established in Singapore in 2012, has suffered huge losses during the market slump in recent weeks, while Bitcoin (BTC) has hovered around $20,000, compared to its previous highs of more than $20,000. 60,000.
According to reports from earlier this month, Three Arrows Capital was potentially insolvent after having at least $400 million in liquidations. For the first time in two years, the company reportedly stopped meeting its lenders’ margin calls during this year’s sharp market downturn. BlockFi, a cryptocurrency lending company, reportedly supplied Bitcoin to 3AC, but the company was unable to meet a margin call due to the bear market.
On Wednesday, the beleaguered hedge fund was forced to liquidate by the British Virgin Islands. The decision reportedly came on the same day that Voyager Digital sent a notice of default to 3AC for failing to repay a loan of 15,250 Bitcoin and 350 million USD Coin (USDC).
On the other hand, the reports sparked rumors of 3AC going bankrupt. Despite this, the creators of the company continued to assure customers that they would do everything possible to find a fair resolution. The company hired legal and financial consultants to explore options such as asset sales and a rescue package from another company, according to founder Kyle Davies.
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