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3AC Hedge Fund Investigated by U.S. Regulators

Mon, 10/17/2022 - 20:29
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Alex Dovbnya
Bankrupt cryptocurrency hedge fund 3AC has appeared in the crosshairs of U.S. regulators
3AC Hedge Fund Investigated by U.S. Regulators
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Bankrupt cryptocurrency hedge fund Three Arrows Capital has appeared in the crosshairs of U.S. regulators, according to a report by Bloomberg.

The hedge fund, which was one of the most influential players on the cryptocurrency scene, imploded earlier this year.

U.S. regulators are reportedly investigating whether 3AC lied to its investors about its financial health.

The report, which cites anonymous individuals familiar with the probe, says that the hedge fund’s founders, Su Zhu and Kyle Davies, could potentially face different kinds of penalties.

As reported by U.Today, a court based in the British Virgin Islands ordered the liquidation of the hedge fund back in June. The embattled hedge fund ended up filing for bankruptcy in early July.

Davis and Zhu reportedly stole borrowed funds in order to buy a yacht.

As reported by U.Today, Zhu claimed that he could fail could face imprisonment in an affidavit that he delivered in person in Thailand in September. He claimed that the court-appointed liquidators were providing inaccurate information.

In late June, the hedge fund was accused of providing false information by Singaporean regulators.  

FTX Boss Under Investigation by Securities Regulator

The whereabouts of the founders of the beleaguered hedge fund remain unknown for now.        

In other news, Texas’s securities regulators are investing the U.S. subsidiary of cryptocurrency giant FTX for potentially violating federal securities laws.   

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at