U.S. regulators the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are investigating whether bankrupt cryptocurrency hedge fund Three Arrows Capital misled investors about its balance sheet and financial position.
The CFTC and SEC are also looking into whether Three Arrows Capital broke the law by failing to register its trading activities with the two agencies.
Singapore-based Three Arrows Capital filed for bankruptcy in July of this year, saying its business had “collapsed in the wake of extreme fluctuations in cryptocurrency markets.”
The hedge fund suffered huge losses stemming from the collapse of the terraUSD algorithmic stablecoin in May.
In June, the Monetary Authority of Singapore (MAS) reprimanded Three Arrows Capital for misleading it and providing false regulatory information.
Currently, the location of Three Arrows Capital co-founders Su Zhu and Kyle Davies are unknown and liquidators in the hedge fund’s bankruptcy case and their attorneys are unable to track them down or communicate with them.
