MAS Bans 3AC Executives Zhu Su and Kyle Davies, Is OPNX Exchange Impacted?

In a statement on Thursday, the Monetary Authority of Singapore (MAS) said that it has imposed a nine-year ban on Three Arrows Capital (3AC) executives, Kyle Livingston Davies and Zhu Su. The prohibition orders (POs) came into effect on September 13, 2023. Notably, The founders of the bankrupt crypto hedge fund Three Arrows Capital, namely Zhu Su and Kyle Davies, respectively held the positions of CEO and director, and chairman and director within the company.

MAS Imposes Restrictions On Zhu And Davies

According to the statement, Zhu Su and Kyle Davies are now barred from “any regulated activity” and managing, holding director positions in, or acquiring substantial shares in any capital market services firm under the Securities and Futures Act (SFA).

In the wake of MAS’s June 2022 reprimand against Three Arrows Capital for providing false information to MAS, neglecting to report changes in Zhu’s and Davies’ directorship and shareholdings, and exceeding the allowable assets under management for a registered fund management firm, MAS launched further investigations into the firm, Zhu, and Davies.

The regulator asserts that Three Arrows Capital neglected to inform the Monetary Authority of Singapore (MAS) about appointing a new fund manager, provided false information to MAS by stating that this manager didn’t engage in regulated activities, and did not establish a suitable risk management framework.

Loo Siew Yee, Assistant Managing Director of Policy, Payments & Financial Crime, emphasized the necessity for senior management in fund management to establish strong risk management measures for investor protection.

She further expressed MAS’s grave concern regarding Zhu’s and Davies’ blatant disregard for MAS’s regulatory mandates and their failure to fulfill their directorial responsibilities, stating that MAS is committed to purging senior managers involved in such misconduct.

Will It Impact The OPNX Exchange?

The Seychelles-registered crypto exchange, OPNX was co-founded by the 3AC executives, Kyle Davies, and Zhu Su, among others. After the prohibition notice by the Singapore authority on the individuals, some are thinking if it will impact the exchange or not.

Meanwhile, the ban prohibits both of them to involved in the financial markets within the city-state. So, it might not directly impact the OPNX exchange.

However, it is worth noting that on August 16, OPNX and its founders, including Kyle Davies and Su Zhu, were fined approximately $2.8 million by Dubai’s Virtual Assets Regulatory Authority (VARA). The fines primarily stem from violations related to marketing and advertising standards set by the regulator.