Singapore's financial regulator accuses three Arrows Capital of wrongdoing

The crypto hedge fund Three Arrows Capital has suffered a major loss due to the sell-off in the crypto market for the past few weeks and is being liquidated. Facing financial difficulties, Three Arrows Capital has been accused by Singapore's financial regulator of exceeding the limits of assets and giving false information.

The Monetary Authority of Singapore (MAS) has been quoted as saying that Three Arrows Capital had given wrong information about the shift to the British Virgin Islands last year. For this MAS has strongly reprimanded the firm. However, it is not known about any penalty imposed on it. The queries sent in this regard have not received any reply from the firm. MAS said that the firm has delayed in informing about the changes in the directors and their shareholding. Apart from this, in the last two years, it had also crossed its limit of assets under management.

Crypto brokerage firm Voyager Digital served a default notice to Three Arrows Capital earlier this week for failing to pay off a loan of approximately 15,250 bitcoin and around $350 million in stablecoin USDC. A court in the British Virgin Islands has ordered the liquidation of Three Arrows Capital. Consultancy firm Teneo has been appointed as the liquidator. 

The liquidation report of Three Arrows Capital came on Wednesday. Recently, the co-founder of the firm had said in a tweet regarding the speculation of liquidation that the firm is committed to resolve it. Due to the slowdown in the crypto market, many firms in this segment are cutting their workforce to reduce costs. Coinbase, one of the major crypto exchanges, also recently decided to reduce its workforce by 18 percent. Headquartered in the US, the firm says that in this difficult period of the industry, it has taken this step to reduce costs.