The CFTC and SEC began scrutinizing hedge fund Three Arrows Capital, which declared bankruptcy.
The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) are investigating whether bankrupt hedge fund Three Arrows Capital has misled investors.
CFTC and SEC Enabled
Bloomberg reports that the CFTC and SEC are investigating whether Three Arrows Capital misled investors about its balance sheet and violated the rules by not registering with the two regulators.
The Singapore-based company filed for bankruptcy in July, announcing that they went bankrupt due to extreme price fluctuations in the cryptocurrency markets.
The hedge fund has suffered huge losses, particularly from the collapse of the terraUSD stablecoin in May. At the end of June, the Monetary Authority of Singapore (MAS) warned the company for giving false information.
The Commodity Futures Trading Commission did not respond to a request for comment on the news.
The whereabouts of Three Arrows Capital founders, Su Zhu and Kyle Davies, is currently unknown.
Cryptocurrency companies continue to be targeted by regulators. Finally, Texas’ securities regulator, FTX US, and Sam Bankman-Fried began the investigation.
