By Brenda Collins
Su Zhu and Kyle Davies, co-founders of the cryptocurrency investment firm 3AC, have suffered a great loss due to the nine-year financial industry ban they have been subjected to by Singapore’s Monetary Authority (MAS). Concerns regarding risk management practices and their regulatory background led to the prohibition.
To protect investor interests, MAS delegate Loo Siew Lee underlined the significance of effective risk management practices. The suspension follows several inquiries into the workings of 3AC and the founders’ positions within the business. The risk management techniques used by the investment firm raised concerns from the Singaporean government.
While speaking on this development, MAS spokesperson Loo Siew Lee says, “Senior administration of fund managers must put robust risk management measures in place to protect the interest of investors.” It was also gathered that Su Zhu and Kyle Davies are totally barred from engaging in any regulated financial activity in Singapore for nine years due to the prohibition.
An analysis by Tim Hakki on Decrypt Media said that the regulatory authorities are sending a clear message with this action about the value of compliance and responsible risk management in the cryptocurrency asset management industry.
Dubai Authorities Issue Reprove To 3AC Founders, Investor Protection Advised
Su Zhu, Kyle Davies, and the Singaporean ban have all come under regulatory investigation in other countries. Dubai’s Virtual Assets Regulatory Authority (VARA) issued written reprimands to the founders and three other individuals for their involvement with the cryptocurrency project Open Exchange (OPNX).
Also read:The letter censure from VARA compounds the legal difficulties Su Zhu and Kyle Davies are already facing and cast doubt on their participation in the larger cryptocurrency business. Tim added that regulators’ attention is shifting more towards maintaining investor protection and the integrity of financial markets as demand for digital assets rises.
Information has it that 3AC’s court-approved liquidators, Teneo, said that the company (3AC) owed them $1.3 billion, which was linked to the losses from the company’s final days, just before it went bankrupt in July 2022.
According to Loo Siew Yee, MAS Assistant Managing Director of Policy, while speaking to journalists on this development, MAS usually takes like the co-founders seriously. He called it a “flagrant ignominy of MAS regulatory dereliction and requirements of the authority’s directors’ task.” Yee added that his organization will act on weeding out senior executives who engage in such irregularity.
It was revealed that an unnamed cryptocurrency company registered in Seychelles and belonging to Zhu and Davies, in August, claimed that exchange OPNX was fined almost $2.7 million by the Virtual Assets Regulatory Authority (VARA) in Dubai for offenses relating to Market Offenses. The said fine is yet to be paid to date, September 14.
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