Three-Arrows Capital Founders Handed a Hefty Ban from Singapore

3AC founders are now prohibited from business operations within the region.

A hand stamped 'BANNED' on a photo of Kyle Davies and Zhu Su in Singapore.
Created by Kornelija Poderskytė from DailyCoin
  • Singapore’s regulatory authority strengthened its regulatory rules.
  • Action has been taken against the founders of Three Arrows Capital.
  • Authorities have reportedly uncovered new regulatory violations.

In the ever-evolving landscape of cryptocurrency regulation, where governments seek to establish order and oversight, the founders of the now-bankrupt Three Arrows Capital are again thrust into the spotlight for all the wrong reasons.

The founders, infamous for their “cut and run” escapades through Europe after the hedge fund’s collapse in the wake of the 2022 FTX crisis, are now on the receiving end of Singapore’s ire.

The Nine-Year Ban 

According to an official statement released on September 14th, the Monetary Authority of Singapore (MAS) has issued a staggering nine-year ban to co-founders Zhu Su and Kyle Davies following a series of infractions and breaches of regulatory laws within the country.


The accusations include providing false information to regulators, lapses in notifying the MAS about key personnel appointments, and the absence of a proper risk management framework for digital assets under their management. The infractions violate the ‘Securities and Futures Act 2001,’ and the ‘Securities and Futures (Licensing and Conduct of Business) Regulations (SFR).’

Effective September 13, 2023, Su and Davies are prohibited from engaging in regulated business activities within Singapore. Restricted responsibilities include holding managerial and directorial positions or participating as major shareholders in capital markets.

Beyond its legal implication, the ban underscores the consequences of Su and Kyle’s involvement in the Three Arrows fallout. The hedge fund, once a crypto market giant, crumbled following the Terra Luna collapse in 2022. It ultimately filed for bankruptcy in July of the same year with a list of over 27 creditors.

Singapore’s Regulatory Standards

The actions of the Monetary Authority of Singapore are part of its broader commitment to upholding regulatory standards in the digital landscape, especially as a region known for its favorable stance toward cryptocurrencies.


In August, MAS unveiled new regulations to safeguard legitimate businesses and protect local investors. The regulations extended specifically to stablecoins in active circulation, aiming to ensure and maintain stability.

According to assistant managing director Ms. Loo Siew Yee, “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.”

On the Flipside

  • In August, Su Zhu and Kyle Davies’ other business, OPNX, was fined by Dubai regulatory authorities for unregistered operations.
  • The recently imposed ban in Singapore raises questions about the fate of Three Arrows Capital’s creditors, seeking to recover significant losses.
  • The bankrupt hedge fund still owes debts exceeding $3.5 billion to its creditors.

Why This Matters

The implications of the nine-year ban handed to Zhu Su and Kyle Davies extend beyond the boundaries of regulatory action. It can potentially impact the broader crypto industry, as Singapore’s cryptocurrency and digital asset regulation approach may influence other regions.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.