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What happened to Three Arrows Capital (3AC)?
Three Arrows Capital was a Singapore crypto investment fund manager that failed in 2022. Singapore's financial regulator, MAS, reprimanded it in June 2022 for giving false information. In 2023 MAS banned its two founders, Su Zhu and Kyle Davies, from regulated activity for nine years.
What it means for you
When a large fund that has borrowed heavily fails, the lenders and platforms it borrowed from can fail with it. The losses can reach people who never dealt with the fund.
How it works
On June 30, 2022 MAS said the firm gave misleading information about handing its fund to an offshore entity in the British Virgin Islands that shared a shareholder and director with it, that it had gone over its S$250 million limit on assets under management, and that recent developments called into question the solvency of the fund. On September 13, 2023 MAS issued nine-year prohibition orders against Zhu and Davies, finding the firm had no risk management framework for the crypto and digital asset investments it managed.
Sources: MAS: reprimand of Three Arrows Capital (30 June 2022), MAS: prohibition orders against Zhu Su and Kyle Davies (2023) · checked 5 October 2026
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